Today I was going through one of the articles. There is no wonder that Equity gives best results if held for long term. I can confidently say this because I have done this. I recently shared my experience with one of the equity stocks and how it gave me a great experience. But the sad thing is that I should have had a better quantity. That is what I feel today for all my other stocks too. I should have had a lot in my holdings. That's when if I book profits it will be bigger and better.
Sometimes this happens unintentionally where I have been holding some of the stocks in my portfolio for over 6 to 8 years and did not get a chance to manage them. Being lazy has helped me because one of the stocks that bought for 89 rupees is now at 449 rupees. There are a few other stocks too performing well in my portfolio.
Pick the right company equity to hold
If the plan is to hold for the long term, I think holding the right company stocks is very important. There is no point in holding the companies that are not going to perform even in the long run. Some seasonal stocks do well during a particular season and then again go back to normal. Those stocks will also not give anything fruitful in the long run. So, it is better to analyze and pick the right company stocks to hold.
Don't sell them if there is no need to sell
In my case, I did not have any need to sell any of my stocks. I wanted to just keep it as it is and 6 years passed. Today when I take a look at those stocks they are doing well and even today if I close off all those stocks and take the money out, it is a huge money I should say. My invested value is not that much.
Booking profits at the right moment
When we talk about long-term holdings, even though it is important and good, it is also important that we should be booking our profits at the right moment. I have seen a few stocks doing good in my portfolio and some stocks did very well about 3 years back and have gone down again way below my bought price. I understand that it is hard to predict when the book profits and when to predict the high value but if we are satisfied with our earnings, then maybe that is the right time to say enough and book our profits.
Sell the extra to recover the investments
Some stocks are good at giving dividends. And some stocks also give us some bonus. Usually, when a stock provides a bonus when a split happens, the price of the stock becomes half. This means that the value of one stock has gone down but the overall quantity of stock has gone up. This happens to many stocks.
This is when we have to be wise and book our profits. Some people sell their bonus stocks as soon as they get it. It is not a good strategy. In most of the cases when a stock happens to split the price of the stock will still recover back to the original price or very close to the original price. So it is better to wait for the price to reach its original price and then sell it to book profits. If we do it this way, we will be able to retain the same stocks and also book our profits when the time is right.
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I agree with your opinion that in forex market holding of a equity for long term period is more beneficial then holding up for a short time. It required patience for right to come with larger benefit.
I'm not sure if I would have been this successful if I had done short term trading.
It is a fact that when investing anywhere, if we are getting a good return, we should always take an exit from the market. Get stuck.
My holding stock- IREDA, IRCTC, IRFC, ITC, GAIL
I have been thinking about purchasing IRCTC and holding it long term. At least a few stocks. Let's see.
I kind of agree as well as disagree at the same time 😁
I have had SBI, REC, NMDC from lower levels and they have given handsome returns.
At the same time I have had Morepen and Aarti Drugs and Rallis India and they have done nothing but deepened my losses.
So yeah position sizing in your winners is important and a toght stop loss in your losers is a must. It is kind of you hit some and you lose some game.
Though I am glad that your winners have given you good profits. May your profit rises after 2024 elections 😁😁
Oh nice. I missed investing in SBI at the right time. Hoping to do some investment for the future.
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Great inspiration for equity investors 👍
Please read my blog and give me suggestions
https://ecency.com/hive-167922/@cryptomother/exploring-crypto-and-blogging-my
I’ve never thought of holding a stock for the whole of six years in my life
You’re fantastic to have done that
One of the key things to notice is the fact that we must be very careful of the type of token we actually hold and not only that the type of investment we make