1. A stock market is unpredictable as it is an aggregate of all participants of different types at any point of time - including FPIs and MFs as well.
2. Even bluechips and moat companies can't remain immune from unpredictability despite best ways of logical evaluations.
3. "Timing" buys and sells are, therefore, everyone's own perception of what's in store for the future.
4. Being a contrarian stock investor by averaging its costs is foolhardy because the last one holding such stock will suffer the greatest losses.
5. Instead of getting swayed by daily activities of FPIs and MFs, basic stock-trading tenets may be helpful:-
a) Trade only what you can afford to lose.
b) Ignore stocks with low-volume trading.
c) Trade only in 2-3 scrips at a time.
d) Research your wish list thoroughly.
e) Fix a practical entry price and sale target beforehand.
f) Use stop losses to contain your emotions and fear.
g) Book profits when reasonable targets are met without greed.
2. Even bluechips and moat companies can't remain immune from unpredictability despite best ways of logical evaluations.
3. "Timing" buys and sells are, therefore, everyone's own perception of what's in store for the future.
4. Being a contrarian stock investor by averaging its costs is foolhardy because the last one holding such stock will suffer the greatest losses.
5. Instead of getting swayed by daily activities of FPIs and MFs, basic stock-trading tenets may be helpful:-
a) Trade only what you can afford to lose.
b) Ignore stocks with low-volume trading.
c) Trade only in 2-3 scrips at a time.
d) Research your wish list thoroughly.
e) Fix a practical entry price and sale target beforehand.
f) Use stop losses to contain your emotions and fear.
g) Book profits when reasonable targets are met without greed.