Why KHL is going down ?

thushanthas · 1 Why KHL is going down ? Fri Jun 10, 2011 7:14 pm

thushanthas

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Is KHL undervalued ? why this counter is going down, though we hear positive news on tourism sector almost everyday.

I'm holding this since June 2010 avg 21.00 Should i dispose this or hold

shaankh · 2 Cardinal rule Fri Jun 10, 2011 7:39 pm

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One of the cardinal rule is if a share is dropping more than 5% of the value you bought you should sell it immediately. If a share is rising more than 5% do not sell it until it reached to desired maximum according to the technical analysis.

wallstreetguy · 3 Re: Why KHL is going down ? Sat Jun 11, 2011 7:19 pm

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shaankh wrote:One of the cardinal rule is if a share is dropping more than 5% of the value you bought you should sell it immediately. If a share is rising more than 5% do not sell it until it reached to desired maximum according to the technical analysis.

There is no such such rule like that. I havent even read or seen or heard any smart investor saying such a thing. If you have trouble imaging a 20% loss in the stock market, you shouldn't be in stocks in the first place. We all come here to make money, not huge losses. We should make losses inorder to realise our gains. I have more than 10% losses on such shares in my portofolio. They key factor is patience, and which drives the stock market is actually not fundamentals such as P/E Ratios and EPS. Its the FEAR and GREED which drives this market. Technicals and Fundamentals both work.
T.V and other Media will encourage people to invest in the CSE because bank interest rates are low, but for the dumb money and the poor, banks are the safest option. It doesnt matter if its 8% on F.D, you are garunteed of getting it end of the maturity. STOCK Market is for people who have excess cash and who are willing to tkae such risks.

KHL as I have read in this forum, it seems to be a dead share at the moment. But this would go up sooner or later. I dont say you should keep this share longer, because even if it is a penny stock if you lose, you lose your whole investment. Technical Analysis can help you out minimizing more losses. If that specific share is baout to go flat, then sell it off immediately because there will be something other than gaining nothing. There are more experienced investor in this forum. They would give a good answer.

tubal · 4 Re: Why KHL is going down ? Sat Jun 11, 2011 7:30 pm

tubal

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wallstreetguy wrote:

shaankh wrote:One of the cardinal rule is if a share is dropping more than 5% of the value you bought you should sell it immediately. If a share is rising more than 5% do not sell it until it reached to desired maximum according to the technical analysis.

There is no such such rule like that. I havent even read or seen or heard any smart investor saying such a thing.

Guess you ought to search google for stop loss. That term has been used plenty of times in this forum in case you haven't noticed.

wallstreetguy · 5 Re: Why KHL is going down ? Sat Jun 11, 2011 7:47 pm

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shaankh wrote:One of the cardinal rule is if a share is dropping more than 5% of the value you bought you should sell it immediately. If a share is rising more than 5% do not sell it until it reached to desired maximum according to the technical analysis.

Yes I have heard and researched about stop losses by putting buy limits and sell limits on stocks. This is usefull to prevent major losses and gain satisfying profits. But the above quote is misleading. This is my view. Its nothing personal.

kam2011 · 6 Re: Why KHL is going down ? Sat Jun 11, 2011 8:04 pm

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wallstreetguy wrote:

shaankh wrote:One of the cardinal rule is if a share is dropping more than 5% of the value you bought you should sell it immediately. If a share is rising more than 5% do not sell it until it reached to desired maximum according to the technical analysis.

Yes I have heard and researched about stop losses by putting buy limits and sell limits on stocks. This is usefull to prevent major losses and gain satisfying profits. But the above quote is misleading. This is my view. Its nothing personal.

I too agree with wallstreetguy, You cant follow that rule in markets like CSE. May be it is a good rule for well matured Markets.Here you can see frequent fluctuation of price of the shares of so called blue-chips too.. Eg; LCEY,CARGILS,RICH,HNB and some other leading Banks.Also recently listed good counters such as LGL has recorded the same trend.