Investment_ HCL TechTrading and investing are completely different in nature.
In trading, we don't care about the prices whether it's fair or not.
We buy high and sell even higher.
But in investing, we should only buy a stock near its intrinsic value. No matter if everyone is making money except us. But, price which is justified by fundamentals are sustainable and proved sustainable historically.
"Intrinsic value is upgraded or declined based on fundamental changes. I amend my intrinsic value every year based on the growth of the company."
So here I am with a stock named HCL Tech. According to my method of calculating intrinsic value, it's not worth more than ₹700 a share.
It has broken its daily trendline on charts. And I am expecting it to come at least near my intrinsic value. Well, this will not happen overnight, it may take several months, to several years.
But, what if the stock didn't come down to my intrinsic value?
I won't buy it for investing. Never.
Short term trades can be taken, which can even last for several months, but for investing? Nope.
Disclaimer: The views expressed in this article is of my own, you're solely responsible for any decision taken in the markets. The analysis I've shared is just for informational and educational purposes only.
