We have all heard this "buy on dips" argument... after all if a stock has fallen down so much, how much can it fall?
A look at today's losers ...
WOCKPHARMA down from 2000 to 800 in 3 months
A look at today's losers ...
WOCKPHARMA down from 2000 to 800 in 3 months
FINANTECH from 1200 to 800 and then to 600
GITANJALI from 600 to 55... I got a huge number of "can I buy this stock?" calls
No wonder it is said - " never catch a falling knife "
ReplyDeleteCorollary ... average when in profit; for long positions, average up never down.
DeleteExtremely true. See what happened to stocks like Glodyne Trechnoserve,Educomp, Everonn,Core Educational Technology, Opto Circuit, XL Energy.
ReplyDeleteCorrect.. but whenever a rally happens in NIFTY, these stocks are highly unlikely to recover their past levels... it will take a long long time. People mistakenly believe that if a stock has corrected by 60-70%, it will recover same amount whenever market conditions improve.
Deletesir then what about stocks like TATA STEEL AND SAIL
ReplyDeleteThis year SAIL is declining right from 103 levels and stock has lost more than 50%. Before that the decline on weekly charts is from 240 levels and there is still no buy signal. So why trade stocks like these? Some time or the other a buy signal will emerge.. then we can think about this.
DeleteThis story is similar for stocks making new lows this year.