Hey All,
There is a saying, 'where there is profit, there is also loss.' Hence, one needs to be prepared for losses, and I know that loss is difficult to digest when you invest beyond your capacity. Therefore, it is imperative to invest only what you can afford to lose. Simply put, do not risk more than you are willing to part with. We all love profits, and why not? It provides extra income. However, when there is a loss, we often deviate from our original plan and attempt to do something else to minimize it. While this can sometimes work, it may not always be effective, depending on the situation. In today’s post, I’m going to discuss how I handle losses in the stock market, using an example. This approach can also be applied to crypto. So without further ado, let's jump into it and take a look at the different stocks I’ve invested in, focusing specifically on the loss in 'JWL' (Jupiter Wagons Ltd) stock, which is currently down by around 7%.
Dealing with Losses Stock Or Crypo...
I had my reasons to pick this ticker JWL and they were:::
- The stock has a good market cap of 23K+ Cr. so not a penny stock with a good business line
- JWL has has delivered good profit growth of 80.1% CAGR over last 5 years again a good indicator for the stock
- Looking at its competitors who are Jyoti CNC Auto, Titagarh Rail, Action Const. Eq. and others Jupiter Wagons price is cheap trading around Rs.551/- as noted above.
- No major debt to the company
Hence based on the above reasons, I started accumulating JWL stock whenever the stock was down and this way at present I have close to 240 shares of it at an average price of Rs. 591 and the current trading price of the stock is Rs.547... so you can see overall loss is around Rs.11K+ To be honest I am not worried about the loss as I am a long term investor not into trading and this gives me the opportunity to wait until the stock rebounds and until then I keep on accumulating and come closer to the price where the stock is currently trading. In simple terms try reducing the losses by averaging it out and the same technique people use it in crypto terming it as - Dollar Cost Averaging (DCA) in where you invest a fixed amount of money at regular intervals, regardless of the price of the asset. This helps reduce the impact of market volatility by spreading out your investment over time. The overall idea is to keep investing, and an important point to note here is that the stock or crypto token you are investing in should have a good market cap, along with strong fundamentals and long-term growth potential. Well that should be it for todays post on as to what I do when I am facing losses in a particular stock and what my strategy looks like. And a final note on JWL stock; I will continue to invest in it in small chunks and bring my average price down so until then its #hodl and keep accumulating JWL stock for now... I will continue to track the stock and at every dip from here on its going to be purchase from my side.... Happy Investing....cheers
Its not Profit ALL the Time - What to do when there is Loss? In Cryto or Stock - My Strategy Ahead...
#stock #stockmarket #nse #bse #jwl #jupiter #jupiterwagons #investment #finance #strategy #sensex #indiastockmarket
Have Your Say On the Jupiter Wagons Ltd; ticker:: JWL - What to do when there is Loss? In Cryto or Stock...
Do you invest in India Stock Markets? What are the different criteria you look into before picking a quality stock? Are you invested in the Jupiter Wagons Ltd? Short term Vs Long Term? Please let me know your views in the comment section below...cheers
Image Credits:: screener, pro canva, sharekhan, zerodha
Best Regards
PS:- None of the above is a FINANCIAL Advice. Please DYOR; Do your own research. I've an interest in Blockchain, Stocks & Cryptos and have been investing in many emerging projects.