I fell in love ! Not once but many times. Most of the times, it ended in disaster!
Yes, We all fall in love with the companies we invest in.
The story starts when we try to find that one company which will make us rich with a small investment. We take inspiration from stories like ‘ I bought that share at 10 Rs a few years ago and now it trades at 1000 +‘ and other such stories.
I bought shares of Yes Bank a few years back believing in the same story when experts were recommending it for a target of 1000 plus. It was at 350 then.
Then there was some bad news and it started falling continuously.
They say ‘Love is Blind’ because we avoid the shortcomings and focus on the positives of someone we love. We listen to our heart and not to our brain.
It worked in the same way here.
I held on ‘knowing’ that it would climb back. But it kept falling and falling. Though my heart said it would go up, it just did not rebound !
I averaged at 175 still confident and happy that i had reduced my purchase price. But it kept going down making me feel that i had burnt some Diwali crackers.
People who were recommending it at 350 were now recommending it again at 175.
Unfortunately it was a sell recommendation !
I finally exited at 150 burning a deep hole in my pocket.
First Moral – Don’t fall in love with stocks.
Second Moral – Even though in love, don’t think with your heart.
But i swore revenge. I will ensure that I end up with a profit in Yes Bank.
When it reached 80, i decided to take that revenge and bought it back thinking ‘ Aur kitna girega’.
To my horror, it kept falling and falling and today quotes at 13.55 per share.
Third Moral – Never try to take revenge with the stock market.
Fourth Moral – Exiting with a small loss takes more guts than holding on and convincing yourself that you are anyway a long term investor.
Thousands of investors still hold shares of Yes Bank still hoping that someday it will regain its lost glory. For those who were not able to sell off earlier, there is one more moral :
‘Never Lose Hope’
Open your Zerodha Trading account here.