Some of my learnings👍😁
1. Large cap can become midcaps or even smallcap. Eg. IndiaBulls Housing, Yesbank
2. You can’t predict how much a stock could fall or rise. Saw 50-100% (Pcj, Rcom) rise and 50-60% (Infibeam, Jet), Dhfl) fall in stock in just a single day.
3. Large Cap are as risky as smallcaps.
4. PE is just a number don’t follow it stictly.
5. Promoter Quality does matter. High priced stock become more priced. Eg HDFCAMC, DMART, BAJAJ FINANCE. All these stocks have PE >50 to 250+.
6. Investors who love buying cheaper stocks should know the stock can become more cheaper after you have bought it.
7. High Debt is like a hanging sword on the company which could fall anytime.( Rcom, JetAirways, Jain irrigation)
8. During a bloodbath even quality stock can fall 10-15% or even 20% in just a day but that doesn’t mean the stock has no quality. Eg. Bajaj Finance
9. Stock recovery is never V shaped. If there is a stock which is following, it might be manipulated.
10. No Stoploss can save your investment . Big traders already know where you will keep Stoploss, they will push price till that point where you will exit at any cost. Therefore know the business before investment or investment the amount you afford to loose.
11. Last, stock prices react first and news arrives later. Therefore don’t think investing is as easy as it just requires 1+1.
