If a company’s fundamentals are alright, the price drop is a ‘Big Billion Day’. It’s a golden chance to buy more shares at a discounted price. – Raj Shamani
How to AVOID loss…even when your favourite share has taken a dive? [A thread] 🧵
Suppose you bought a share at ₹ 980. But the market crashed and took your favourite share down with it. It’s currently trading at ₹ 880, making you a loss of ₹ 100 per share. How to avoid this loss?
There’s only ONE legitimate way—don’t sell the share. That’s the secret. That’s what pro investors do when their favourite stocks take a dive. They hold their shares when everyone else panics.
Stock losses don’t count until you sell. The stock market fluctuates significantly during the day. Especially in a bearish market, the stock prices will fall significantly. But losses don’t count until they are booked.
Why do most investors lose their money if avoiding loss is that simple? It happens because they don’t trust a company’s fundamentals. If the stock price takes a dive, it doesn’t imply that the company is performing poorly.
If a company’s fundamentals are alright, the price drop is a ‘Big Billion Day’. It’s a golden chance to buy more shares at a discounted price.
When should you sell a stock and book losses? – The stock’s fundamentals have deteriorated – Any negative news about the company or industry has come out – You have realised you bought a wrong stock
Remember the golden rule: “Losses don’t count until you sell.” Use this thumb rule to avoid losses during a market crash and have a good night’s sleep.
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