Chasing a running scrip

While writing this article I can remember Aamir Khan's dialogue to Salmaan Khan in the movie ishq, "life mei teen chezo k piche kabhi mat bhagna ladki, bus or train." ( never run after three things a girl, bus and train)................ well I want you to add one more thing in that list that are stocks. yes ladki, bus, train and stocks. Infact I want stocks to be first in the list let it be stocks, ladki, bus and train. Yes I know we have ran after all the stated in aamir's list plus the one I have just added and we are preety successful specially in the second and third ones in Aamir's list (some of you might be successful even in the first one :) ) but I can bet you have never been successful in the one I have just added to the list, thats running after a rising stock, most of the time what you find is that immediately after your orders gets executed the stock start reversing. You want to buy a scrip, you check the buy and sell order coming up on the screen........... the price is rising what you do is to put whatever price you can get to buy the scrip and your orders get executed and at the end of the day the stock closes 2 or 3% below your entry price, or you may see a penny stock is hitting upper circuits since last 1 month, you enter it and just after few days of your purchase it start hitting lower circuits and you got stuck in that one.

I am sure this has happened with all of us, now the question is how do I know that? Well, I was you once................ I have gone through all of the things you are going through right now and these small things which I am sharing with you people matter a lot. I have learned them over a long period of time and it took blood, sweat and tears to learn them and I don't want you people to go through it. So, the best thing for you people is to learn from mistakes I have made and try to avoid them I will try to share all of them with you.

Now you may ask what the solution is? Here comes the solution................... the decision to buy a scrip should be made before the market opens, and you should be clear with yourself what is the maximum price you will be willing to pay for it and you should also know why are you buying that stock and one more thing you may be a hardline fundamentalist but you should never buy a scrip without checking its chart (for charts I have already mentioned chartink.com and Chart Nexus if a chart is already showing a significant uprise prior to your buying then you should straight away avoid it............ there is always another scrip because that means the price you are paying is not the ideal price and there are many who are holding since lower levels and they may book profits anytime which may lead to reversal in trend. So, from now onwards either get the scrip at the best price or don't get it at all because there is always another scip................ and that's what the top 5% investors who are minting total 95% of the money generated in stock markets are doing and I want to see each one of you in those 5%.

Happy diwali to all friends
May Godesses Lakshmi Bless You with all you have ever dreamt of

Your Friend
Abhishek Ninaniya
The Stock King
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girijanms
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October 22, 2014 at 11:56 PM delete

Rightly said sir. I have been and am still going through this situation. That's what happened to me recently with Hindustan Tin Works and JBM Auto.. I am afraid that I am going to be there for a long time.

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October 23, 2014 at 5:50 PM delete

No worries bro, these mistakes were there for you to learn from them. If you don't make the same mistakes again, then they can prove pillars of success for you. Regards and Happy Investing to you.

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