They keep declining and every minor rally is seen as an opportunity to sell. Many investors get trapped in such stocks as they hunt for value and eventually get trapped in them for a long time. Let's take the example of BHEL
Here's BHEL Chart
This stock chart is another reminder of why one should have stop loss even on investment position and how dangerous it is to hunt for bottom once the chart is broken.
Here's one interesting conversation I want to share and just to make a simple point: why it pays to follow a chart no matter how much conviction you have in the stock
It is good to have conviction and belief in a company but it does not hurt to get it validated on charts.
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication, you agree to make no trade relying in whole or in part on the comments of the writers