What should one do when holding stock falls 20 per cent
One should never lose capital while trading or investing in stock market.
One should always sell it always when a holding stock falls 20 per cent without any further doubts.
Never hold stocks that has given you more than 10% loss. Max: 15%
One should always be disciplined to have a stop-loss at 10–15% in its support zone.
One can always move to a better performing script.
Never put all your money in a single script. Diversify it. Hold or invest in atleast 10 stocks. This will help in having liquidity and help you move from under-performing stocks to outperforming stocks. This will also help you maintain good Stop-loss and also help while selling at good target prices.
There are scripts that keep making new highs, they keep repeatedly outperforming the market and outperforming its sector.
Never lose your capital while investing, be disciplined and respect your stoploss always.
If one is short term trader or long term investor, choose 3 best performing sectors in the market and invest in top 5 performing scripts within the sector.
In India, (as on 14–09–2016)
NIIT tech, NIIT, HCL are outperforming in IT space.
Torrent Pharma, Glenmark, Biocon etc are outperforming in Pharma.
Companies listings like Jain Irrigation, Gabriel, GNFC, Banco products, Delta corp, Bombay Bumra, Prime Focus, Munjal showa, Ucal fuel, PNC infra, Bombay dyeing, Amaraja Batteries etc are currently outperforming.
Hold solid stocks that outperforms the market and never average an under performing stock. Always mind that good stocks that outperform can even be averaged at a higher price.
Sell your stock in next +-5% move and buy a good performing stock. Always remember to sell when your holding stock falls more than 15% and switch to a better performing script.