CA.Sandeep Pahade

Practicing Chartered Accountant, founder of "FLY- Financial Literacy & You", keen Capital Market Follower/Investor,Poet,Author,Trekker & what not !!!

[CA.Sandeep Pahade @PahadeSandeep]

@narendramodi @nsitharaman I am hardcover Modi supporter hence want to warn you in advance that "What is happening with TMC now can happen with BJP if it don't stop over taxing middle class citizens, keep it simple".

[CA.Sandeep Pahade @PahadeSandeep]

@theskindoctor13 @Suhelseth @hvgoenka He's very smart, his omissions are on purpose. Ambanis are greedy & at times not ethical while Adanis are very ambitious and killing competition by following साम दाम दंड भेद policy.

[CA.Sandeep Pahade @PahadeSandeep]

@DoctorMoneyX @Osint613 You're insulting "Animals"😜

[CA.Sandeep Pahade @PahadeSandeep]

@ArmanNahar मुझे पूरा यकीन है ट्रंप की और शकुनी की कुंडली 100% मैच होगी. बस जरूरत है कृष्ण की जो इस कलियुग के शकुनी की हर चाल की तोड़ निकालकर उसको मात दे सकें.

[CA.Sandeep Pahade @PahadeSandeep]

@NeerajCNBC Trump's only Moto is to manipulate things for his own benefits, never seen any world leader as morally & ethically corrupt as him.

[CA.Sandeep Pahade @PahadeSandeep]

@hvgoenka वाह वाह..क्या बात है👌👌

[CA.Sandeep Pahade @PahadeSandeep]

अब तक हम सुनते आए हैं की "गंगाधर ही शक्तिमान है"

मगर भारतीय राजनीति में हम देख रहे हैं की "राहुल गांधी ही जमील जमाली है".. असली धुरंधर !!!😜😜

[CA.Sandeep Pahade @PahadeSandeep]

@aakashkashmire @NashikTraffic @TheNashikIndex @WeAreNashik @NashikMetro @CitilincNashik @QCNashik @my_nmc @RushikesH27027 @SmartNasik @HarshSengh83257 आता हे नवीन गाजर नसले म्हणजे मिळवली🥕🥕

[CA.Sandeep Pahade @PahadeSandeep]

@ZeeBusiness अबे गधे, तु ना होता तो युद्ध ही नहीं होता.. दुनिया में शान्ति होती.

[CA.Sandeep Pahade @PahadeSandeep]

@SandeepKrJainTS @ZeeBusiness 👍👍

[CA.Sandeep Pahade @PahadeSandeep]

@ishmohit1 दोनों मिलें हुए है, इनके बीच नुरा कुश्ती चल रही जिसमें एक मारने का नाटक कर रहा है और दूसरा रोने का. दोनों तय करके अपनी अपनी पोजीशंस लेकर मार्केट से पैसा बना रहे ��ै और दुनिया को उल्लू बना रहे है😜

[CA.Sandeep Pahade @PahadeSandeep]

@NewsAlgebraIND ऐसी पागल बीवी हो तो बेचारे पति को नवरत्न तेल का ही सहारा लेना पड़ेगा ना 😜😜

[CA.Sandeep Pahade @PahadeSandeep]

@kushallodha548 Dear Kushal, you're doing wonderful job by bringing India's top & highly influential people in your podcast & sharing the crux of their journey which inspire many and help them to choose right path. We are proud of you as a Nashiktes. Keep it up bro !!

[CA.Sandeep Pahade @PahadeSandeep]

@ShatruganSinha ख़ामोश, चपडगंजू😜

[CA.Sandeep Pahade @PahadeSandeep]

@DoctorMoneyX @KobeissiLetter Exactly, you can trust anyone but not Trump & Pakistan.

[CA.Sandeep Pahade @PahadeSandeep]

@IPrabhakarSP @Shehzad_Ind कपिल सिब्बल को इतनी ही शर्म आ रही है तो उसको बोलो देश छोड़ कर चला जाए, उसके ट्रैवल और खाने पीने का ख��्च में उठाने को तैयार हूं

[Sekhar @LearningEleven]

The Stock Doesn’t Know You Own It: The Psychology of the Stop-Loss and the Art of the Re-Entry

I regularly see many investors struggling with stop-losses, so putting a few thoughts down here.

"Whatever damage had to happen has already happened. What's the point of selling now?"

"Let it get back to my buying price. I'll exit then."

"This is a 3-year story anyway. Why sell now and buy again later?"

These are some of the most expensive sentences in investing.

The market doesn't care about your buying price.

It doesn't know where you entered.

And it certainly doesn't owe you a chance to break even.

Personally, I follow a strict stop-loss framework: Never lose more than 7% of my capital.

I have made enough mistakes in the past by not respecting stop-losses and have seen deep drawdowns in my portfolio. Over time, I realized one simple thing, it just doesn’t make sense.

We are in equity markets to make money, not to lose money. Even if returns come slowly, that’s perfectly fine. But there is absolutely no point in taking unnecessary deep cuts to capital.

If the goal is simply to lose money, then honestly, fixed deposits would be a better option.

The struggle with stop-losses is one of the ultimate tests of investor psychology. It looks simple on a spreadsheet, but executing it in real-time feels like trying to pull your own tooth.

Here are my thoughts of why this happens, why breaking the rule is so dangerous, and how to logically handle a stock you absolutely love when it hits your exit trigger.

1. Why we struggle with stop-losses
The inability to cut a loss isn’t a lack of intelligence; it’s a direct conflict with human biology. Behavioral finance highlights three major psychological traps that trip up retail investors:

• Prospect theory & loss aversion: Psychologists Daniel Kahneman and Amos Tversky proved that the pain of losing $100 is twice as intense as the joy of making $100. To avoid that acute pain, your brain tells you to keep the position open. As long as you don't sell, it’s a "paper loss," not a "real loss." Selling forces you to accept reality.

• The sunk cost fallacy: You start justifying the investment based on the time, effort, and money you have already invested in researching it. You feel like exiting means throwing away all that "work."

• The "get-even" syndrome: The moment a stock dips below your purchase price, your objective changes from making a profit to just getting back to break-even. You freeze, praying for a rebound that may never come.

Especially, this third point, I have heard many a times - "Let it come back to my buying price, I will exit then."

2. Why a stop-loss is non-negotiable
Think of a stop-loss as an insurance policy, not an admission of defeat.

In investing, you do not need to be right 100% of the time to make serious money. You just need your winners to be larger than your losers. A stop-loss ensures that your downside is capped, preserving your capital. If you lose 50% on a stock, you need a 100% gain on your remaining capital just to get back to where you started.

What happens when you have discipline?

When you ruthlessly honor your stop-losses, your equity curve changes structurally. Here is a conceptual comparison of two investors:

The Disciplined Investor vs The Emotional Investor

• Losses: Capped at 5-8% vs Small losses turning into 40-60% portfolio anchors.

• Capital: Quickly redeployed from weak stocks into stronger opportunities vs Trapped for months or years "waiting to break even."

• Mindset: Calm, systematic, and focused on the next setup vs Stressed, anxious, and constantly checking prices out of hope.

In investing, protecting capital is not just about money. It's also about protecting your peace of mind.

3. "But I Love the Stock!", Why you must still exit
Loving a stock is dangerous because the stock doesn't know you own it, and it doesn't love you back.

Even if a company has incredible fundamentals, excellent management, and a brilliant future, you must exit if it breaches your stop-loss for two major reasons:

i) The market knows something you don't (yet): Institutional investors (who move the markets) might see a structural shift, a supply chain breakdown, or an upcoming bad quarter that hasn't hit the news yet. A technical breakdown below a major support level is the market telling you that large players are distributing (selling) the stock.

ii). Opportunity cost: If a stock enters a prolonged cyclical downturn, your money sits there doing nothing while other sectors are racing ahead.

Exiting a stock you love isn't saying goodbye forever. It’s saying, "I like you, but I will not let you destroy my capital right now. I will buy you back when you stop bleeding."

4. How to enter back safely (the re-entry strategy)
Never chase a stock out of anger or FOMO. If you exit a great company because it hit your stop-loss, put it on a dedicated "Re-entry Watchlist."

To buy back in safely, wait for the chart to prove that the sellers have exhausted themselves. Look for these specific technical cues before re-entering:

• The stage 1 base formation: Wait for the stock to stop making lower lows. It should start moving sideways, forming a "base" or a consolidation zone. This indicates institutional accumulation is happening again.

• The trend reversal: Look for the stock to cross back above key moving averages, such as the 50-day or 200-day Exponential Moving Average (EMA), on strong volume.

• The structural breakout: Re-enter when the stock breaks out of its sideways base with a surge in volume, making a fresh "higher high."

By doing this, you might end up buying the stock back at a slightly higher price than where you sold it, but you are buying it with certainty and momentum, rather than catching a falling knife.

Always remember - Capital protection comes first, profit comes next.

Happy Sunday!

[CA.Sandeep Pahade @PahadeSandeep]

@Vijay456V60026 Salil Ankola

[CA.Sandeep Pahade @PahadeSandeep]

@VijayKedia1 @nsitharaman @FinMinIndia विजय सर, हमारी FM का नाम निर्मला है जिसका अर्थ होता है- स्वच्छ, मल रहित !!

निर्मलाजी पर अपने नाम को सही साबित करने की धुन इस कदर हावी है की वो हमें मल रहित के साथ साथ "माल रहित" बना रही है😜😜

[CA.Sandeep Pahade @PahadeSandeep]

@hvgoenka Very true, Sir👍