Tanishk_Ojha Federal Goetze Had invested (around ₹300) in March - at the bottom of the market. Valuations were reasonable and the markets were at the bottom. Mistake #1 - Never invest all money in a single stock. Written rule of stock markets is never to put all eggs in one basket. I thought - since my cost of acq is so low - the risk of ruin is next to 0. But - the bull rally in the past 4-5 months showed the other side of the coin - the agony when everything around rises, except your PF. Mistake #2 - Don't average downwards Endowment effect pretty much. Always know that markets know much more than the participants. There are always things which you don't know about. Read this MOSL report on UU Investing Mistake (or Rule) #3 - Don't be afraid of leverage. Mistake #4 - You can select the best of stocks - but not be guaranteed of best of returns. #Mistake #5 - Dont let greed take over. I had decided to take leverage on FMG around 350 levels to be sold at 400 levels. The results were good but the stock remained lull. In a couple of weeks - it ran to 425 levels. Did'nt completely exit though. Even though the initial goal of the leverage was achieved. #Mistake #6 - Not using strict SLs.
