I am posting a study of this stock over here...Panacea Biotech...Why? Because this is a fundamentally very strong stock and also I love it...Reasons? I will tell you....This stock trades at around 400 levels right now...You will not believe it..I had this stock when it was at 20 odd levels...I held on till 44 and sold it off at almost 100% profit...At the time I thought it was a big profit and I sold off....Then again one fine day I checked this stock and it was at 90 odd levels...Since it technically looked good, I picked it up again only to sell off at 110-120 levels thinking it was overvalued again....Then again a year later I check it only to see it was 250+ levels...I was shocked to say the least....Again picked it up and sold off at 330 levels...Still having not learnt my lesson...This stock was a multibagger for me over a period of 3-4 yrs...from 22 to 400+...20 times...If that aint a multibagger I dont know what is....
Now why did I say all this? Investing vs. Trading...Or even I can say long term trading...This is always better in hindsight..Many a times we think a stock is overvalued and sell it off only to see it much much above our sell price a few months later...This is a problem I believe every single trader has...
What can we do about this...I believe if we have a fundamentally strong stock, I think that we can hold on to this with a stop...a very loose stop is also ok in cases of stocks like these...Instead of just selling off, its better to have a trailing stop based on the charts....
And this is very important - Be very ready to pick up the stock again if it goes above obvious resistance lines...if you see above chart, I have drawn what are the obvious resistance and support lines...240 or 300 for this stock if it ever comes is a SURE SHOT buy...I think if we get a correction in the general markets, pick this stock for sure...if you get 300 or best shot 240, pick it up in size...I will....And since I believe we will get a big correction(maybe a slow correction even though big)...be ready to pick this stock at 300 and 240 levels.
Then again stops are important as always...Set stops whenever you pick up a stock...We can always pick up a stock later after reevaluating the situation. Obvious supports are always readily visible on charts...You dont need me to tell you what that is...
Similar stocks I have seen over the years are reliance petroleum, reliance, and some other stocks...I will try to cover some of these in following posts...
Best.
No comments:
Post a Comment