Investment in the equity market: Unrealized Loss in one trade, Profit booking too early in other trades.
I started in the equity market in August 2023 and witnessed one of the biggest dips in the market, where each day the market kept falling. Actually, for many stocks, it created the 52-week low and it kept going down to crash further.
One of the good things that happened to me was that I was a newbie and starting to invest in the market so I do not have any significant amount invested in the market. Also, I got an early lesson that the market crash can easily wipe out the profits and may cause you to lose your capital.
I had already talked about this particular investment (NHPC) in one of my earlier posts where I shared that I purchased this stock at Rs. 79.75 per share and it went down to Rs 75 per share. I was hopeful that it would recover, and today, I kept my initial little investment in it and sold the rest for Rs 84 per share. My gains after taxes will be close to 3%. This is not much, but I am happy to book a small profit and am looking for an opportunity to deploy this capital in new stock or just withdraw it to put in fixed deposit for guaranteed positive returns.
I purchased Coal India at Rs 386 per share and saw it so many times that it kept oscillating between Rs 380 to Rs 400, so I decided to sell at Rs 400 per share and buyback at range of Rs 380 to Rs 390. I guess my luck is not on my side as after my sell it further climbed 7% and I am out of position in this stock. I guess I booked profit too early, but who can predict the future?
Since I have capital spare due to the Coal India stock sale, I decided to invest in ITC at Rs 350 per share. At the end of the day, I am in "unrealized loss" of Rs .30 per share. ITC got a sudden dump due to a change in government policy regarding taxation of Cigarettes. ITC major profit comes from tobacco segment, but it is a big FMGC company having significant presence on Food products, personal care products, and stationery items.
Though it is showing loss for me today, I have feeling that it might give me profit in next couple of months.
If you like to read my other post on the equity market, then you can read it here.
AI, Energy, and the Indian stock market.
Investing: I am focusing on preventing capital loss.
The Profit Dilemma: Play It Safe or Aim Big?
Disclaimer: I shared my personal trades, but these are not at all recommendations for anyone to follow. Nor am I authorized to give any equity market recommendation, so these are all my personal views and one should perform their own research or consult the authorized personnel to make these financial decisions.