I have always found it difficult to average up in any stock. I generally buy a stock when it’s at attractive valuation. That means If a stock price is moving up, that means it’s not as attractive as my first buying, and so I couldn’t find comfort in averaging up. I was discussing this with few of the VPers in one of the meet, and I got following suggestiong
1) Read and understand about technicals. Learns from Vivek Mashrani and Hitesh
2) Put into practice the learnings
I feel l should test the waters with some part of my capital (with skin in the game) and depending on the outcome of my experiments I could gain confidence in averaging up in a stock. I think my problem is mostly psychological and I’d like to train my mind to find comfort in it
So, here I go. I have some fundamental view on MCX (with conservative valuation comapred to peers) that I’ve posted recently in MCX post
Link to the post here
Whatever gain i expected from the stock in 18 months, I’ve gained in 45 days itself. So, on valuation front MCX is not so attractive any more (after 40% up run in last 45 days). But instead of valuation factor, there’s momentum factor now. When I made the analysis, I compared the valuation with CAMS and CDSL and benchmark, but they have also gains handsomely in past 2 months. So, I expect even MCX to move up in tandem.
One can also see how BSE has performed over last 1 year, as it’s option volume is increasing well and gaining market share. Even MCX is going through somethign similar currently i.e. option volume growing at 35-40% YOY at a sustained rate. So, I expect MCX to rerate significantly from here
I’m averaging up in MCX and would like to track in future, how this performs in future. I consider this to be a new beginning and would help me learn to become a better investor (or momentum investor)
Disc: No reco by any means
Thank you
Praveen