Stuck with Stuck stocks ?

Have you ever found yourself stuck in a stock that just won’t budge? Perhaps you’re invested in a company with stellar prospects, yet the share price remains stagnant year after year. It’s a frustrating situation that many investors face, but it doesn’t have to be this way. Let’s explore the concept of momentum investing and why it might be the solution you’ve been searching for.

The Alibaba Conundrum: A Case Study

Take Alibaba Group Holdings, for example. A titan in the world of e-commerce, Alibaba’s stock has been hovering around the same price for nearly a decade. Despite its impressive cash reserves, growth potential, and buyback initiatives, investors have endured years of disappointment as the stock fails to gain traction. This scenario highlights the inherent risks of traditional investing approaches, where even the most promising stocks can languish for years on end.

The Pitfalls of Discretionary Investing

Many relatively new investors fall into the trap of discretionary investing, relying on their own intuition or external recommendations to guide their decisions. However, as evidenced by the Alibaba saga, this approach often leads to frustration and missed opportunities. Waiting years for a stock to perform as expected can take a toll on one’s confidence and financial well-being, highlighting the need for a more reliable strategy.

Embracing Momentum Investing : A Paradigm Shift

Enter momentum investing, a strategy that prioritizes stocks on the move. Instead of holding onto underperforming assets in the hopes of a turnaround, momentum investors focus on securities with upward momentum, riding the wave of success to maximize returns. While this approach may seem counterintuitive at first, its effectiveness speaks for itself.

I would like investors to try and get a taste of momentum investing as well to understand the intricacies of this system. By aligning with the momentum of the market, you can bypass years of frustration and uncertainty.

Check out the detailed video on The WeekendInvesting App

WeekendInvesting Strategy Spotlight

Reflecting on the best performing stocks from Nifty 50 in FY 2024

We all know that Nifty 50 did reasonably well in FY 2024 clocking 27% gains.

But did you know that there were some stocks within Nifty 50 that clocked more than 100% during the same period ?

TATA MOTORS : 130% (1.78% weight in Nifty 50)
BAJAJ AUTO : 123% (1.05% weight in Nifty 50)
COAL INDIA : 116% (1.19% weight in Nifty 50)
ADANI PORTS : 114% (1.04% weight in Nifty 50)
NTPC : 102% (1.68% weight in Nifty 50)