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In technical Terms!! Stock are overvalued where there is No Demand. Stocks are Undervalued where there is a Demand. So don't sell stocks which are trading around 75-100x where there is a Demand!! Don't unnecessarily Disturb the process of compounding!

Hmm 🤔🤔 Rule # 1: Extreme bad news is usually a buying opportunity Rule # 2: Large Candle Sell off leads to more decline Rule # 3: Overowned markets + Bad Macro environment fuels Panic and Chaos. Rule # 4: When you are in the hole, stop digging Rule # 5: When in Doubt, Stay Out

If it costs you your peace of mind, it costs too much. True for life. True for investing.

Newbies should never forget the maxim "buy in haste and repent at leisure". No one ever lost by booking profit. All gains fleeting and notional, unless sold. Opportunity loss is fine, money loss not wise. Concept of SL exists to ensure we don't lose 100% of our capital.

@whydoyouaskwhat You see, whether Darvas or ML, Anomaly Detection has been an important concept.

3/ Ask these questions 1. If the risk occurs, will the fair value be impaired ? 2. If yes, how bad is the damage ? 3. Will the value recover during my holding period ? Finally, diversify to manage the unknown risks

Do You act or do you react, there is a big difference in the outcomes and it is a behavioral finance question.

This is why investing is so much fun. A conservative investor may stay away from such a situation but an aggressive one looking for a mispriced bet will look for exactly such situations. And both will be right in their own ways.

But markets open every day. They have to price an asset in which “some shit is happening” even if all the shit that’s happening is not out yet (sorry about the pun).

Vison to see them (networking+strong screening process) Courage to buy them (understanding of the business and variance of outcome) Patience to hold them (Non volatile earnings growth or strong earnings atleast in the medium term:-2-3 years)