don't let your investments sink

if a stock has moved 200 points in 1 year
how many points can you make in investing in that stock?
obviously not more than 200!
now, if i told u that
this stock
fell by 200 points
and not the other way round
what will be your answer?
again, obviously, you will say
that what to talk of making 200 points
you would have lost 200 points
by remaining invested in this stock
in the last one year!
--
well,
i am talking about reliance industries!
it fell from 1111 to 911 in one year!
--
will you believe me
if i tell you
that there are people in this market
who have made more than
1000 points in reliance industries
in this one year
and that too
when they were
caught
INVESTED
in this stock!!!
yes, it is true!
reliance industries
travelled this 920-1120
delhi-mumbai route
more than 10 times in last 1 year or so!!!
this makes it more than 2000 points!
so, making 1000 points out of this is not a big deal!
--
but how did they do it while staying invested on the long side?
simple
while they stayed invested in the stock
they protected their investment
whenever it took a clear down-trend
by buying put options. --
out of 2000 plus point movement
they managed 1000 odd points.
and that too when the stock's net movement was just 200 points!
while pocketing all the dividends
and making the investment tax free!
--
protect your investment!
it will reward you doubly!!