In 2010, I bought a few hundred shares of Reliance Communication @ Rs. 185.00 per share, now they are trading at around Rs. 35. But I am keeping them close to my heart in the hope that they will regain their lost glory of Rs. 750 per share.
I bought 50 shares of Tata Elxsi for Rs.225 per share and sold them @Rs. 550. Now they are trading at around Rs 1450, so I have been practicing opposite to the famous yore, " Run your profits and cut your losses."
I bought 50 shares of Tata Elxsi for Rs.225 per share and sold them @Rs. 550. Now they are trading at around Rs 1450, so I have been practicing opposite to the famous yore, " Run your profits and cut your losses."
When I am in profit, I book it due to the fear that the profit will evaporate. In the case of Tata Elxsi and Well Spun India, I booked profit in the hope that I shall buy them again at dips, but they never saw dips before multiplying many times. Once I bought 700 shares of Gammon India with the target of reaping 10 times profit. The price of shares doubled in a year but I DID NOT SELL THEM KEEPING IN VIEW TEN TIMES TARGET, BUT they came down slowly and now trading below my purchase price for 4 or 5 years.
The experienced exhort that sticking to any rule will not guarantee profits always but sticking to a good rule will give you profits most of the times.
Should I watch, 200 days moving average i.e. purchasing a share when it goes above its 200 days moving average and selling it when it goes below its 200 DMA.
I request the experienced friends to guide me.
