TIP: NEVER TRY TO CATCH A FALLING KNIFE
Folk, a lot of times we act without much of thought and it cost a lot to us. Investing is an art and no decision should be taken in haste. Buying a stock should only be done only by taking account of various things of the company.
Therefore, you should never buy a stock for long-term when stock prices crash more than 10-20% in a day.
Today I will share you some charts where investors tried to catch a falling knife and most of the long-term investor are still burning their hands.
- Glenmark: Share prices crashed due to bad quarterly results. And the investors who tried to buy at bottom of the day surely burnt their hands in it.
- Vakrangee: Share got tanked due to some rumours on price and volume manipulation by promoters. There was series of continuous sell off in Vakrangee after that. Its prices tanked upto 63% within 10 days
- PC Jewellers: Share prices crashed 45% on a single day and reasons were unknown. But this massive selloff triggered fear among investors. Investors who bought middle of crashed priced also burnt their hands at the end.
- Lupin: Stock prices crashed upto 17% due to USFDA observations. It was one of the biggest crash in last 2 years. Long-term Investors who entered even at the bottom are still stuck at bottom of the stock.
Read: How do Retail Investors lose money?
Some Investing Books
