What to Do with Losing Stocks? How to handle your losses?
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- čas přidán 26. 09. 2023
- When you have losing stocks in your portfolio, it can be challenging and stressful. However, there are several actions to consider:
Don't Fall into the Trap of the Breakeven Fallacy:
One common mistake investors make with losing stocks is the "breakeven fallacy." This fallacy involves holding onto a losing investment in the hope that it will eventually return to the purchase price, allowing you to break even. However, it's essential to understand that the market doesn't consider your purchase price when evaluating the future prospects of a stock.
- Why it's a Trap: Holding onto a losing stock solely with the goal of breaking even can lead to missed opportunities elsewhere. It ties up your capital and may prevent you from investing in assets with better growth potential.
- Consider Opportunity Cost: Instead of waiting for a stock to break even, assess the opportunity cost. Calculate what you could have earned by investing that capital in a different, more promising opportunity. If the potential return elsewhere is higher, it might be better to cut your losses and reallocate your funds.
- Focus on Future Potential: Rather than fixating on the past and trying to recoup losses, focus on the future potential of your investments. Evaluate whether the losing stock has a reasonable chance of recovery and growth, and compare it to other potential investments in the market.
- Set Clear Exit Criteria: Before investing, establish clear exit criteria. Determine at what point you will sell the stock if it continues to decline, and stick to your predefined strategy. This can help you avoid falling into the trap of the breakeven fallacy and make more rational decisions based on your financial goals.
Remember that investing is forward-looking, and what matters most is the future potential of your investments, not the price at which you bought them. Don't let the breakeven fallacy tie up your capital and hinder your ability to make more informed and profitable investment decisions.
1. Assess the Reasons for Losses: Analyze why the stock is performing poorly, considering company-specific issues, industry trends, or broader market conditions.
2. Review Your Investment Thesis: Reevaluate the reasons for your initial investment and check if they are still valid or if the investment thesis has changed.
3. Diversify Your Portfolio: Ensure your portfolio is diversified to spread risk and avoid concentrating all your investments in one stock or sector.
4. Consider Your Time Horizon: Assess if your investment horizon aligns with the stock's performance, especially considering whether it's a long-term or short-term investment.
5. Set Stop-Loss Orders: Use stop-loss orders to limit potential losses by automatically selling a stock if it reaches a certain price.
6. Seek Professional Advice: If unsure, consult a financial advisor for guidance tailored to your situation.
7. Rebalance Your Portfolio: Periodically adjust your portfolio by selling some profitable investments to buy more of the losing ones to maintain your desired asset allocation.
8. Average Down: Buy more shares of a declining stock if you believe in its long-term potential and have the risk tolerance, reducing your average cost per share.
9. Tax-Loss Harvesting: In taxable accounts, consider selling losing stocks to offset gains and reduce your tax liability.
10. Learn from Mistakes: Treat the experience as a learning opportunity, understanding what went wrong with the losing investment and applying those lessons to future decisions.
11. Monitor and Adjust: Continuously track your investments' performance and be ready to adjust your strategy as needed.
12. Stay Informed: Stay updated on the financial health of the companies you've invested in and any news that might impact their stock prices.
Remember that all investments come with risks, and not all losing stocks are necessarily bad investments. Make informed decisions based on your financial goals, risk tolerance, and understanding of individual stocks. Avoid making impulsive decisions driven by fear or emotions and be patient in your approach.
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What to Do with Losing Stocks? How to handle your losses?
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Boosan
Wonderful video Boosan!!!
Must needed video at correct time bro❤
Superb Video. Thank you brother
You are giving live examples this is different from other youtube channels thanks much
Thank you bro your information ❤
Great insight bro!!! 🎉🎉
Hi boosan, thanks, really useful
Correct ah sonneenga boosan..super
Well explained 👍🏻
Thanks bro✌🏻️
Good insight boosan🎉
Excellent bro
Thanks for a great information with real time example bro👍 keep rock🤘 try to make video weekly once bro atleast🧐
Once again a clear cut video
Very good bro..,
Super brother thank you ❤😊
Ok bro ipo current situation la yendha stock la invest panalam bro ❤️✨
Thankyou sir
Cleared all my doubts thanks for the good video🎉
Bro...very good explanation....right now I'm in the same situation bro...AWL and Vedanta share....Your words are reflecting my thoughts...thanks for your valuable guidance...
Glad you find it useful.
nice info 😀
Great job bro , nice explanation synonymous with - growth , Trend following & momentum investing philosophy . ⚡🤝
⚡️🤝
@@finance.boosanBro one doubt... Mutual fund every year evala profit varutho antha amount a growth option la add panniruvangala... like fixed deposit...
wonderful ❤
very useful to beginners bcz they[me also] not accepting losses 60% loss in bcg today i decided tosell wrongly selected stock
Same I did in Delta Corp
Comparing Net profit for 4 quarters against the peer is a good gauge of whether there is a problem with the company alone or the sector. You can take a decision from there.
I am unable to post my comment dont know why,
Ok my doubt is what is there are no buyers if i wish to come out of loss stocks
Thanks brother. Thanks a lot....I bought Delta Corp @189 RS . Total 250 quantity. I bought by hoping 230 as target. Now sold 150 quantity @140 RS. Holding 100 quantity for high. But now thinking to sell these too.
Bought at same price, harvested losses.. Remember why you bought the stock before exiting.. If you din do any research about the company then exit
@@ajithjoseph637Yes blender mistake by getting curious by seeing some half boiled youtubers Akshat & Rahul
3:09 - stock market mela dhan pogum nu solarpo, people refer to indices. Not individual stocks. See the chart of sintexindustries
Correct, example I brought RPower for 250, but now 😢
0:42 - yes, very underrated understanding among beginners. I get to this concept after a video of Aanand Srinivasan. You can see this visually in kite as well. Just go to a chart of any stock. Click the measure (scale)icon under draw menu. Draw a line in two ways. In one way, start it from bottom and end it on the top. Note down the percentage change. Now again, do the opposite. Start at the same top and end at the same bottom. You can see the percentage change for the same range.
True, that's indeed a good way to visualise it
@@finance.boosani am unable to post my comment
Plz say some updats abt ggpl and shubam i invested by some influencer and its drastic loss and i have no buyers to exit
Useful information brother thank you very much.
How to put automatic stop-loss for longtime investment
Please kindly make a vido for automatic stop loss for long time investment thank you very much
Nice bro.. I am holding kiri industries 80 stock with price of 423.. now the price is 270.. it was trading upto 500+ . 52 week high is 534. Pls provide your suggestion on this
Bro Is that Good idea to Hold 2 Nifty 50 index with different AMC or.....1 Nifty 50 index and Nifty Next 50 index is good....which of the pairs are good to be in Portfolio???
Please help me with Answers
Brother ITC P/B , P/Eathigama iruku ...
But neraya per ippovum en accumulate panna solluranga ?
vera level bro 🎉🎉🎉
Naalaiku daha Delta corp eh average pannalam nu i thought 😂 and this video is out
@aramanbu. Bro eppadi win pannurathu yaru vena solla,la but yaru namba yepadi lose pannu vom solutathu tha kastam.if we don’t lose it’s definitely a win bro 👍👍. He is doing a great job @finance boosan
Bro
Nifty GSec Index Fund
What is this ? Plz explain.
Kotak announced NFO On this index fund
Why PGInvt falling ? Is this the time to buy or sell? Or to exit completely?
Coal India, iocl and tata steel can i keep on investing 😅 anyone suggest or sip in index fund
Bro, Hdfc Bank neenga sonna scenario la dhan iruku, Ipa sell panitu average panlama ila wait panlama ?
Bro buying new stock or averaging the loss stocks 30% which is best idea
Anna oru doubt.
Na ipo oru 50k invest pannita few stocks la athu yenaku ipo 2 lakhs ah increase aagidichu so, Na profit book pannita but antha amount ah still na Zerotha account la vechutu iruka apdina yenaku antha amount ku tax pay pannanum ah or zerothala irunthu yen bank account ku transfer panna yenaku tax varuma ah...
Pls reply pannuga anna
Sir oru limited aane amt le portfolio irak but epo sell pannerd epo buy pannerd teriyale adnale 4yrs ha 25% profit le irak portfolio konjam idea kudunge
Broo RBI t bills pathi explain pannunga
Useful bro i am bigeners 🤗🤗🤗🙏🙏🙏🙏🙏🙏🙏🤝🤝🤝🤝🤝👌👌👌💯
Bro na long term investment pannalam nu iruken
Monthly 1000 invest pannuven so oru stock ah eppidi long term la accumulate pandradhu price average pandradhu nu sollunga bro
Sir, Holding DPABHUSAN share
Should I hold or sell
Pls suggest
Bro evalu amount ku Mela trade panna tax pay pannum plz ans
Upl, polyplex, sbicard, redington, pfizer, idhellam average panni thalavali konduvandhuten😅
7:33 - eludhi palaganum guys. write down your strategy.
வேற எது wipro தான். 431ல வாங்கியது 384ல விலை போய்ட்டு இருக்கு😢.
Bro JFSL good stocks no with a big dream i was holding that stocks but even though after few good positive announcement also this stock going down so I exited with 12%loss
VI 100 any chance?
Good evening boosan
What is hair cut
தெளிவான விடை
if i joined ur channel what are all the benefits members
Hi bro...small doubt... about mutual funds
Ippo na Sip concept la pogama...
Lumsum option la pona... monthly monthly money add panna mudiyum ma....like custom amount like first month 5k and second month 10k....and 3 month 3 k...
Enkitta iruka amount etha mathiri invest panna mudiyum ma
You shall go buy the dip policy
Post video on consistency brother
Hi bro . I have doubts in Mutual fund investments :
1. Can I stop my Sip . Can I have amount keep invested? Will it give returns ? How long is validity in my amount ? . Bcoz ( if I started Sip with 10k per month and I did 2 years), after that I stopped Sip. N not withdraw that amount - what happens to that invest after 5 years ) ). Please answer.
2. Can I add invest more money in same sip ? Or it will create new Sip in single month
3. If did lumpsum invest, then after 3 month can add again lumpsum in same fund (same pofilo number) .
.
.I think I gave new idea for your video. Please answer
In short yes, but depends on how you are doing your SIP - most of the platforms allows, stop, pause, increase, decrease your SIP anytime.
Ex,. with Coin app from Zerodha, you can pause your SIPs anytime, increase/decrease SIP amount, do one time investment.
More about SIP : czcams.com/video/NoN1lkbvVLk/video.html
@@finance.boosan Thank you for ur time and answer my question. I saw both video which u shared and u posted today. Keep posting n I do support you.
@@finance.boosanI have question regarding the same Mutual fund...can I stop Mutual fund before it's date....or I can't close the Mutual fund like RD before it's closing date
Hi, is this valid also for mutual funds?. If your fund is 20% down, does it need to rise 25% to break even?. Break even means cut your loss to 0% right?. Thanks
Yes that's correct. This breakeven calculation is applicable to any asset category.
@@finance.boosanthanks
Hi bro! I started my investing journey from this year and I have a doubt regarding STCG tax. My CTC is 6LPA, but my gross salary is 5.35L (approx.), after the SD of 50000 my net/hand salary is 4.85L. I sell some stocks within a year,so it automatically comes under STCG tax, right? and the net realized profit is around 3000. Here, do I need to pay tax of 15% for this profit? If yes, then how and where to pay the tax? . Kindly clarify.
There would be an exemption limit of 1 Lakh so they wouldn't charge you for this 3K STCG. You can avoid this by investing in your better half's name or in your mother's name they will have an exemption till 5 Lakhs.
What's this SD?
LIC share for me
Anna oru doubt.. na ipo oru share vangura athu 5x return tharuthu.. so na atha sell pannitu ennoda demat account la cash ah vechutu iruntha yenaku tax pudipanagala or sell panna share amount ah na yen bank account'ku transfer panna yenaku tax pudipangala
1 year kula Sell panitaley tax pay pannanum
Pls reply sir,navi index la lumpsome la amount podurom,same navi index lss lumpsome pota expense ratio same or seperate(0.06 or 0.12)
If you're referring to Navi Index and Navi Index ELSS, they are indeed two distinct funds that both track the NIFTY 50 index. They have different expense ratios.
@@finance.boosan sorry sir navi elss ila,same nifty 50 both
Gail hold panlaaama . Sale pannlama😮
I have watched video multiple times but. I didn't understand properly, 50℅ price went down but to break even 100℅ price needs to increase how?. Can anyone explain this please
Initial Purchased price Rs.100.
It decreased into Rs.50. i.e decreased by 50%.
Now, the price is Rs. 50. i.e 100%• The price reach to hundred is required by 100%• In other words, If the current price (50) is doubled, then it reaches to Rs.100.
Bro vedanta hold pannalama illa sell paniralama
I'd personally not hold it. Not a buy/sell advice, do your due diligence.
Bro PGinvit eppo buy pannalama? 52 week low erukku
PGInvit Video : czcams.com/video/TPfAtmY1jQI/video.html
Vedanta 🥶🥵
Better invest nifty 50 top 10 companies for long term
❤❤❤
100 to 50
Then 100 ku varanum na 50 rupees aaganum 50 ruppes la 50 rupees is 100%
Bro please share silver bees 🎉
👌👌🙏👏
வணக்கம் நண்பர்களே
My pginvit 💔💔
Now VI / YES BANK IPOO BUY PANNALMA
yes bank vendam...VI konja naala pogathum👍👍 my view😊
iRFC
Ji neenga positive ah video podamattingala eappa paru nastam nastam lose oh god... 😢😢😢😢😢
If you're putting the title in English, why not do the video in english instead of hindy?
It's tamil
You are in the wrong server
Book value price value vida kammiya irukura stock vanhuna ethana naal vachu irunthalum profit thanqa 🥲