Today Premier Energies share has listed, I have applied for the IPO but didn't got it. The IPO has given over 100% returns. The subscriptions were crazy and looking at the subscriptions I thought it might br a great swing opportunity. I bought 5 shares and thought of selling it for more than 6% profit which is common on the day of listing.
But as soon as the share listed, it has gone down considerably and I have lost 20% of the money. It was so quick that I have not able to add the stop loss too. And it was actually inching towards stop loss and I thought of buying 5 more once it goes down 800. I was lucky that it didn't go down 800, but it had a turn around and went upto 840. I bought 1 more share to reduce my buying cost.
The amount I actually use for swing trading is 2% of my total capital and that's why it was supposed to be Rs 5K. I added one more share to reduce the buying price. I still feel that this company which is mainly on the Solar or Renewable source might be great for the future. I know people might say that since it has gone down, I am becoming a long term investor.
Actually after the swing trade when I saw it going down, I went to study more about this stock. And what I found that it is growing year to year. Along with thar it's PE is less than it's peers. So that means the stock might get doubled from its current price. I am not saying it might happen today. It might happen one day. And that's why I am thinking of starting an SIP on this stock every month. Most probably I will buy 5 shares of this company till I get into profit and thus will keep it for the future.
PC: Screener.in
So now the learning is that when the IPO get launched, try to wait for 30 minutes to keep things settle down and then try to swing trade.