Buy at low; Sell at high
Any trader and investor usually buys a small amount of shares in particular stock with a hope that it would give him some profit. But selling at higher price is not an easy job. In stock market, everyone wants to earn money. No one wants to loose money in stock market. If you are a trader and usually invest through means of F&O. Then it is your core job to keep a stoploss. Contracts trades in F&O have no limit of profit and loss. I had seen many investors and traders who had made a position for only short time to earn little profit. But some circumstances leads to maintain their position even for 3 years. Since, nobody knows about the direction of any stock and index exactly. So if you have really made a position for short-term with view of earning little profit. You have to keep a stop loss. Because keeping a stop loss usually helps a person to exit from their made positions without any choice if stock starts loosing.
D Mart IPO
The coming D Mart IPO had really made reevaluation of most of the retail Stocks. All are excited for the listing of D Mart. As said by D mart head, the IPO worth around Rs.1870 crore means 10 percent stake sell. All Brokers and Analysts have positive view on IPO and are expecting great opportunity in IPO. But after it get listed, I would recommend to partially book half of your profit from D Mart in the price range of Rs.570-620, if reach successfully within 1-4 days.
We all remember about IndiGo IPO, which also made almost same atmosphere for Airline Companies. We saw a reevaluation in Jetairways and Spice Jet. But within 2 month after listing of IndiGo, all the interest of Investors in Airline sector starts getting loose. This could be because of Crude Oil prices which goes as much as down and then starts rising. But if you go with strategy of selling half of your shares in D Mart after listing and move towards price range suggested. Then you would have a chance of buying back your sold position at lower price. Your Risk would also become very low. However, if stock doesn’t loose even after 4-8 days of listing, then you can continue to hold your remaining half position in stock. Choice is yours but if you really wants to keep a strategy in D Mart IPO, then you must follow this suggested idea.
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