Best stocks give the optimal return for your investment. There are two facts that are widely used as a base for investment strategies.
1. low risk low return -> mostly A-class commercial banks
2. high risk high return -> anything who’s market prices fluctuate widely
So, if one can combine both strategies successfully, then one would achieve the optimal return.
Here’s how I would define optional return: Bigger return than or at least on a par with Nepse average while sleeping SOUNDLY at night!
Here’s the tactics:
1. 80% of your investment in good companies (mostly A-class commercial banks) and hold!
2. 20% of your investment in volatile stocks and be emotionless and strictly disciplined i.e. if you have set 10% book profit, 10% stop-loss target, you follow that no matter what!
>!Disclaimer: I don’t know what I am talking about coz I certainly don’t follow what I’ve just written above! !<
Ok, so it’s a bullish market, so holding doesn’t make sense. Here’s what I’ve been doing. 10% book profit target. Stop-loss chahi chhaina as I haven’t really cared about volatile stocks for sometime now.
All the stocks that I think are good (for me) are above 500rs a piece e.g. PCBL, NICA, SICL, and honorable mention JLI.