Thursday, 4 February 2016

{LONGTERMINVESTORS} 4 Ways to Identify a Risky Stock

You are a small investor reasonably active in the market. Using cricketing metaphors, you have 'hit a few sixes' with your selected stocks. You have also 'got out for a duck' a few times.

Your portfolio is full of mid-cap and small-cap growth stocks - in the hope that some of them will turn into multibaggers. But you are not sure which ones are too risky and should be sold.

Ask yourself some of these questions:

1) A stock you bought rose 10% quickly, but has since slipped down 20% on some adverse news. What will you do?
2) A stock falls 10% just after you buy it, but you keep holding it to get back your 'buy price'. It falls another 5%. Will you hold on, or buy more, or sell?

Read more at:

http://investmentsfordummieslikeme.blogspot.in/2016/02/4-ways-to-identify-risky-stock.html

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