Recovering From A Steep Loss Is Tougher

It's substantially more difficult to get back to "Break Even" when a stock falls by a lot. Deepak talks about why and what you might want to do to protect yourself.

  • When a stock falls a lot it takes that more effort to recover
  • The steeper the fall, the more effort you need
  • What you can do - stick with a stop loss
  • Or, if you've got a sinker, consider whether it is likely to perform better than other stocks.

Examples: DLF, Satyam, Media, Telecom stocks, 2007-2010.