3 Wrong Reasons to Hate a Stock

What is this post about?

Retail investors invest in the stock market to make money. Sometimes they invest in stocks which give them good returns, and sometimes not. Due to various reasons, investors may discard a stock as a bad pick, and never look back at that stock. They may even start hating the stock, and comment on online forums and finance blogs advising other investors to dump this stock.

Why do some retail investors hate a stock? Because it caused them a loss? Because the company’s management did not fulfil their promise on revenue growth targets? Well, the reasons to hate a stock can be many. In this post, I will focus on the most common and wrong reasons to hate a stock. If one of these reasons is true for you, do give that stock a second fresh look.

Let’s get started.

Reason 1: Price goes down after you buy a stock

This is the most common reason to hate a stock. Buying a stock is often driven by stock recommendations on social media. Or by price targets given by fund houses such as ICICI securities, Kotak securities, Goldman Sachs, Jeffries etc. However, once retail investors buy a stock, the price starts falling. Sometimes, even after a week or a month, the investor is sitting in losses. The investor might think- “The price…