Somehow I feel.... Boiling Frog Syndrome is playing out in Midcaps and Smallcaps StoCks....
Query: But they cannot die... This theory is not suitable here....
Is the answer I got from one of my followers....and my answer is as follows.....
The theory itself you have misunderstood.... you have to read the theory properly to understand.... the theory isn't about the frog dying or the midcaps and smallcaps stocks dying.... the theory is all about that small changes keep on happening and we human beings and animals adapt to those small changes without even realising whether those small changes are beneficial or harmful... So here what I want to elaborate is that small Corrections happening in Midcaps and Smallcaps doesn't allow us to get out of them....and they keep on going down and down even we realizing that our portfolio is making losses.... Because you always have that feeling back of your mind what if the Midcaps and Smallcaps again start to go up and outperform.... The best example is Penny StoCks you will find in every bodies portfolio....
We don't sell because we keep on adjusting ourselves continuosly and so we eventually adjust our price downwards as prices falls even though on paper we are making a loss.... and we give aashwaasaan to ourselves that one day when my buying price will come that day I will sell at no profit....no loss basis...and so by default you have married those stocks which are going down slowly slowly and so you are stuck with them and now there is no exit... and eventually you have by default become long term Investor....
And so you are stuck with Suzlon... Reliance power...JP associates.... Vakrangee....Manpassand..... Kingfisher airlines....Shree ashtavinayak.....and the list is never ending....
Query: But they cannot die... This theory is not suitable here....
Is the answer I got from one of my followers....and my answer is as follows.....
The theory itself you have misunderstood.... you have to read the theory properly to understand.... the theory isn't about the frog dying or the midcaps and smallcaps stocks dying.... the theory is all about that small changes keep on happening and we human beings and animals adapt to those small changes without even realising whether those small changes are beneficial or harmful... So here what I want to elaborate is that small Corrections happening in Midcaps and Smallcaps doesn't allow us to get out of them....and they keep on going down and down even we realizing that our portfolio is making losses.... Because you always have that feeling back of your mind what if the Midcaps and Smallcaps again start to go up and outperform.... The best example is Penny StoCks you will find in every bodies portfolio....
We don't sell because we keep on adjusting ourselves continuosly and so we eventually adjust our price downwards as prices falls even though on paper we are making a loss.... and we give aashwaasaan to ourselves that one day when my buying price will come that day I will sell at no profit....no loss basis...and so by default you have married those stocks which are going down slowly slowly and so you are stuck with them and now there is no exit... and eventually you have by default become long term Investor....
And so you are stuck with Suzlon... Reliance power...JP associates.... Vakrangee....Manpassand..... Kingfisher airlines....Shree ashtavinayak.....and the list is never ending....
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