Comment on Lessons from trading on Yes Bank

S S Subramanian commented on 24 Aug 2019, 06:39 AM

In my view the writer is mixing up investing and trading. This is the common mistake made by many. If you buy a stock on fundamentals, you should hold the stock till there is a change in the fundamentals of the stock. The fundamentals include corporate governance, debts, permanent change in business environment etc. If you are going to apply technicals and fundamentals, you will miss out good stock at reasonable price. In my view technicals is dubious as most of the technical analysis is great after the happening of the event and not before. I invested in CANFINhomes at 300. The stock collapsed to 210. I averaged and I sold at 375. This is only one example. The other counters were INFY, TECHM, etc. In the case TECHM i bought at 650. The stock collapsed to 300. I averaged and sold at 720. If I have applied technicals I would have missed the profit. If technicals is applied strictly one has to sell most of the stocks in the present scenario. So if you are investing do not invest in companies with with Corporate Governance issues, huge debts and companies which window dress their balance sheets. I never invested in YESBANK, PC Jewellers, DHFL, India Bulls, TARAMOTORS, Manpasand etc due governence or huge debt. If I follow technicals I will miss out multibaggers. Do not mix up trading and investing. Keep them in separate demat accounts. Do not touch companies with huge debt and corporate governance, negative cash flows, huge relative party transaction. This is my personal view.

View the full comment thread »