Why not wire some money for quick return Say 10-15% of folio.. Not like momentum investing as that is touch to predict too much technicalities.
I am more toward quick opportunity [although now this is also risky] say Divi’s lab(A pharma company) went for a toll after lot of plants USFDA approval got rejected. This is reversible and they can file again for approval and get it in 3-4 months sometime delayed 1 year depending upon observations found during manufacturing facility audit. Anyway so something happened and Market as usual reacted a lot and you see a good entry point .. the company as such was never in your radar .. But this is a large cap company running like for more than 30 years.
So you go ahead and bet your 10-15% of folio targeting to come out after 3-4 months making quick 10-15%.
Similar example happened with Welspun India [brand name spaces for bed sheet towel] Tesco closed their retail deal after finding out incorrect material used in towel/bedsheet than claimed (claimed was Egyptian cotton) used was some thing else. Tesco was their one of the big client like 10% of revenue I guess. market again judged it to be very bad and pulled down by 30-40 % even more
One bad year or profit due to some reason I recognized which is not long term and may not repeat.
1. of-course not getting USFDA approval and getting observation after audit from a manufacturing facility tells a lot negative about management Same can be said for Egyptian cotton and Welspun
2. Entry point when do you enter in such scenario sometime stock dip and then recover a bit and then dip again may be one more negative news or even without that.
3. Chance to go down further increases say USFDA rejected then may be Europe also rejects. Tesco closed their deal then may be IKEA is also susceptive now.
These are just two examples but what I am trying to convey is I have wired some money just for this and when such event occur I check upon the company and even if some of the checklist is failed I invest into them. They are large cap so some checklist items are already full-filled by default. Like less debt .. no cash crunch… okay and capable management (bad in other respect).. management is their for long term.. good business .. good moat .. good future [ remember large cap] .. some checklist which may not be fulfilled =>
Not family owned, bad management, still costly(high P/E)
This looks like Future trading but just that it is without collateral so you know how much you can loose (Less tension). Also you can keep the investment as long as you wish although I will prefer selling it with some loss in 2-3 months max..
But why? Always drive towards simplicity. If you stick to a plan of high saving rate and safe investment than you can’t help but be rich. I don’t understand the hurry and the need to take risk.
If you have recognised many great companies why not earn fast cash by
buying and selling?
let us say one got costly you have other choices.
so buy minimum 1 lakh of the shares and keep on shuffling ?
only problem is trap
you may walk outside your line..
You don’t need to do all this. Just stick to your plan.