Thread ๐งถ on Investment/trading mistake and way to overcome it
You lost money in Trading or Investment
Here how can you overcome from it
Potential Reason :
What the reason of failure ๐
What fault in system ๐ป
Traded by stock tips ๐ก
Not put stoploss ๐ด
Emotional trade ๐
Loss-covering trade ๐ค
Not manage risk-management ๐ฒ
Outsized capital allocation ๐ฆ
Enter after run-up too much (FOMO)
Holding stock even after hit stoploss Buy from wrong entry zone โ
Many more still would be
If you have any problem just solve out that like do invert always if you still holding stock after stoploss hit, square off position after hit,
Do proper risk management
Do follow trading system
Never rely on other's system
Only trade if it is fit on your system
Buy from tips ๐ก
Buy without due diligence โ
Buy without know company's business
Buy without know company's finance
Buy after Business news reportet suggest ๐ฐ
Buy just it's on 52w ๐ ๐
Buy because of low P/E in sector๐งธ
Cheap stock buy ๐ฆ
Buy because of FOMO ๐
Averaging down loser ๐
Hope turnaround story ๐ธ
Ignoring fundamental ๐งฌ
Buying penny stock in hope of multibagger ๐ฐ
Buying just because of it is rising then and now trapped at TOP ๐
Buying commodity stock at peak ๐
Still so much...
Just make sure next you will never buy any stocks based on above reason, that's it always research at your end,
Never buy on borrowed conviction
Never buy only for rising/down
Never buy commodity stocks
Never hold hope turnaround story
Never buy any penny stock
Never buy any stock based on Business news recommendations
Want to learn Trading/Investing
1. Learn free from YouTube but try always from small, And learn method not direct stock
2. Read Any good quality company's past data, audit report, Balance sheet, Concall, etc
3. Read good books on investing / Trading
4. Follow your own method always
5. Learn from twitter community there are so many good handle who always try to learn you how to do investing and trading, Tell reason behind selection kf specific stocks
ROCE :
Return on capital employed means how much company making profit of employed capital (Equity + debt), Just on safer side, It should be above 12-15% , If company consistently earning higher ROCE means company making higher profit from Invested capital and If debt.
Debt to Equity :
Debt to Equity ratio quantify that how much debt company have in comparison to equity, For example company have 100 Rs Equity and 100 Rs. Debt then ratio is 1, and ideal ratio should be 1 (There is many if and but
A simple book of 20 chapters but that 20 chapters are full of wisdom it will change ur perspective to look at Finance, Stock market, wealth Great work is done @morganhousel