The key thing is to avoid getting disappointed.
I can give my example here. This fall has hurt everyone who had remain invested. So, there's nothing like I am better off and I am worse off etc. sort of a thing here.....however, you can regulate the level of panic you have in you. Thats perfectly manageable.
Firstly, adequately diversify. Dont become obssessed with a few companies. I have had disappointments with some companies like thirumalai Chemicals, Ultramarine chemicals, century enka, kanoria chemicals. Some have not performed as per my expectation like Goodyear, Voith Paper, Orient paper, Shipping Corporation etc. But, even then I have never felt dejected. Thats because, I have generally bought them by converting my profits elsewhere. Also, alongwith such disappointments, I have had made some wonderful switching to stocks like Castrol, HUL, BASF( which I subsequently converted to castrol), GlaxoConsumer, tata tea etc. So, diversification has helped me very much in managing my panic level.
Secondly, and most importantly try not to become extremely focussed on capital gains in the near term. Most of us just claim to be long term, but the moment we start losing big, we start showing our true colours. Always remember to make multibaggers, you have to first ensure that the bag size is small.
Thirdly, avoid this tendency of dreaming with eyes wise open. Always understand that the more widely held a stock is, the less probable is to make big money over there. Have the right sort of dreams at the right point of time. Have a bigger picture in mind, but have that picture at the right point of time. Retail will be a big theme, there's no doubt about that, but have that vision when P'loon was less than 50 coins a ticket. At 500 coins a ticket, you had everyone carrying that dream, that vision. The result is for everyone to see.
Also, try not to rely on other people's judgements. Everyone has a different sort of fund requirement, different risk appetite, different financial conditions. Whats good for a very risky person, may be fatal for a very conservative person. there's nothing more dangerous than borrowed conviction.
Lastly, and most importantly have that tenacity and stamina to fight back. Just think about it, even if you lost 60 p.c. , all you need is a 2.5 bagger to recoup all your losses. Thats not a big feat, when the tide turns. But set your sails correct to caitalise on that tide. Not everything will go up 2.5 times. Some may just continue to sink. Just get out of those sinking ships and wait out on a troubled but perfect ship, which will start sailing smoothly once the storm is over.
The key is to think, and think very smartly. Thats the best way to avoid getting disappointed.....
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
IP Logged
