One more followup question, as we take profits in trading do you suggest to take profits from long term investments also? Like I bought long stocks with the intention to never sell otherwise in emergency situation. Is this plan right?
Yes,in long term investments also one has to take profits.Today's high growth stock may become a laggard after few years.But in long term investments our horizon is 3-5 years.Profits should be taken when stock's price goes higher than the price justified by fundamentals,profit growth is stagnating,or when we see signs of entire market topping out.Example is Reliance Ind.was a growth stock of yesteryears but last 5-6 years it is a wealth destroyer.
Yes,in long term investments also one has to take profits.Today's high growth stock may become a laggard after few years.But in long term investments our horizon is 3-5 years.Profits should be taken when stock's price goes higher than the price justified by fundamentals,profit growth is stagnating,or when we see signs of entire market topping out.Example is Reliance Ind.was a growth stock of yesteryears but last 5-6 years it is a wealth destroyer.
Ok gr8 hope we can have a 300- 500 point move cycle and I hope you get time for your inputs throughtout the lifecycle of this trade. Post market hrs would be fine too. Thx