The idea of this section is not to "pick stocks" but rather educate on how to pick right Stocks with appropriate risk management, so that we can benefit from gains as well as cut short our losses.
Lets look at new candidate added this week...
DO NOT forget that market is currently in bearish mode, hence remain extremely cautious and be ready to exit quickly to cap your losses.
Items you should focus on:
- Always check NOTES section for each stock along with STOP Limit - updated every week as per individual stock action
- Find out earnings date for stocks you have in your portfolio, so that you are aware of major events - this is not included in the watch list but links are provided for your own findings/research
- Understand current market direction and decide if you want to remain invested based on market scenario
Things to remember:
- No matter how great the company is and how stellar the earnings are, if market is in correction then the stock performance will be affected
- All boats rise in a rising tide, in short if market moves up then most stocks will also move up and vice-verse. If market is doing well then selectively chosen stocks have higher probability to provide good returns in short duration
- If a stock position does not work in your favor then get out, cutting losses is not easy but necessary, ONLY a disciplined investor/trader will be successful in long term
- Use trade size calculator to manage risk per position
Be disciplined and manage risk appropriately...