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.