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Saturday, October 7, 2017

Should i buy stock when it is in 52 week low?

Actually 52 week low is not a criteria to select a stock. In simple understanding think like this, would you try to catch a falling knife with your  bare hands. If you actually don’t know the exact reasons and impact behind that fall in prices. I don’t think it is advisable to get in that stock. Though you should keep an eye on companies with better fundamentals and touching 52 week low.   There might be temporary problems due to which stock might be falling.


I have tried this trick multiple times so i well know that 52 week low should not be considered as criteria for selecting a stock. I had purchased RECL in past and booked losses on it. Then most importantly two shares that i would like to mention first is RCOM and other is ADANI POWER both of them , tested my patience very well. In the end, i lost money.

Success : It is not so that i had always lost money in it. I had been in profit multiple times. Some stocks like TALWALKARS, AKSHOPTIFIBRE, SBI and others helped me understand that if you go for the right stock at right time. You are sure going to book profit.

You can add a sms alert or something like that so that if your target price is reached you get notification.


Still want to try to give it a try. There are some simple steps you could take. First  visit this page for Near 52 week low stats. http://economictimes.indiatimes.com/marketstats/pid-8,pageno-1,sortby-percentgap,sortorder-asc,exchange-50.cms  Now at the time when i am writing this article i am able to see some of the well known companies in the list. Now start picking companies according to market cap, check its results, related news online. Ask from broker what is the reason behind fall. Calculate the risk and reward behind this. Wait for sometime for stock to make a recovery and then add it to your portfolio. Depending on your risk taking abilities.


1 comment:

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