In the world of investment , it can be pretty boring. After finding the quality companies you are keen to invest and you had parked your funds, there is nothing much to do except to wait. The waiting time are usually in years rather than months or weeks compared to trading.
You probably would have read about the Adani Enterprises news online by now and how the CEO, Mr Adani has lost billions within days. It is less important to a trader if the eventual outcome of who's right who's wrong matters as compared to a good shorting opportunity.
The Hindenburg Research report on Adani was published on 24 Jan 2023. From the chart, we can see the price action has already broke down from the daily bullish trend since 6 Jan 2023. Assuming you pick up the signals from the media and shorted the stock, you would have gained as much as 50% for holding this short for a week or so.
We have seen the light of many global companies that have good reputations and admirable list of investors behind it only to fallen and disappoint many retail investors (eg. FXT, many educational listed companies in China,). That brings my point to the importance of doing your own research, place a maximum cap in each company investment (no matter how much you like it) , allocate sufficient funds for diversification (geographical, sectoral, etc). This is a form or risk management strategy.
In the event of a collapse, your loss (assuming a total loss) is contained by the maximum % of your capital that you had allocated. Imagine those trained chartered financial analysts who had access to more information than the retail investors/traders can also make mistakes , how about us ?
For that, we need a wider margin of safety and staggered our buying into the companies at different price point (averaging up or down) and within the maximum allocation provided.
I do not invest in any India stocks for now and thus seldom pay attention to its country or stock news thus I am not invested in this stock. However, this news could also happen to any stocks listed in US, Europe, China for which I have vested interest.
You probably would have read about the Adani Enterprises news online by now and how the CEO, Mr Adani has lost billions within days. It is less important to a trader if the eventual outcome of who's right who's wrong matters as compared to a good shorting opportunity.
The Hindenburg Research report on Adani was published on 24 Jan 2023. From the chart, we can see the price action has already broke down from the daily bullish trend since 6 Jan 2023. Assuming you pick up the signals from the media and shorted the stock, you would have gained as much as 50% for holding this short for a week or so.
We have seen the light of many global companies that have good reputations and admirable list of investors behind it only to fallen and disappoint many retail investors (eg. FXT, many educational listed companies in China,). That brings my point to the importance of doing your own research, place a maximum cap in each company investment (no matter how much you like it) , allocate sufficient funds for diversification (geographical, sectoral, etc). This is a form or risk management strategy.
In the event of a collapse, your loss (assuming a total loss) is contained by the maximum % of your capital that you had allocated. Imagine those trained chartered financial analysts who had access to more information than the retail investors/traders can also make mistakes , how about us ?
For that, we need a wider margin of safety and staggered our buying into the companies at different price point (averaging up or down) and within the maximum allocation provided.
I do not invest in any India stocks for now and thus seldom pay attention to its country or stock news thus I am not invested in this stock. However, this news could also happen to any stocks listed in US, Europe, China for which I have vested interest.
Comment:
www.cnbc.com/2023/02...erprises-plunge.html
Comment:
ETF with Adani exposures :https://fintel.io/soe/in/adanient
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I was asked to question by a follower if it is too late to join the party to short. My answer is yes! You can see from chart a large chunk of the profits were made when the news broke out on 24 Jan and the sharp drop accelerated the profits of the shortists.
Now that the whole town is talking about it , it is likely some shortists were already taking their profits and some bullish buyers coming in to scoop the shares. So, the direction is unclear , imo it is likely to hoover in a side range movement for a while. Find a better opponent
Now that the whole town is talking about it , it is likely some shortists were already taking their profits and some bullish buyers coming in to scoop the shares. So, the direction is unclear , imo it is likely to hoover in a side range movement for a while. Find a better opponent
Comment:
www.cnbc.com/20...legations-.html?&qsear...
A good shorting opportunity may come soon as this case gets more serious and warrants Government interventions. Watch the 2017 price level
A good shorting opportunity may come soon as this case gets more serious and warrants Government interventions. Watch the 2017 price level