Invest Mid-Cap, Invest Wise.

What is more important while investing in stock? There are value stock, small stocks and also mid-cap stock. Investing in high net worth stock comes with higher risks involved. Similarly, small stocks gain only on small news. However, mid-cap stocks are comparatively steady and safe. Therefore, for relative safety, choose value stocks in the mid-cap space instead. Importantly, you should have a high-risk appetite.

For smaller stock, entry and exit needs to be planned, which most of the investors do based on insider information. However, towards mid-cap stocks, a long term approach works better. And that is why it is an advisable option for retail investors. 

But performance of these stocks needs to be monitored regularly. Say, once in two days, you should check up on them to see if there is any development in the sector or the company. Keep yourself informed and updated, so that it’s not difficult for you to miss out on clues in case you need to exit midway. Fundamentals of the stock like valuations or price-to-earnings ratio are not always accurate measures to depend your decision on. A good technical analyst can help you, but then again, cross verify everything before blindly following him.

A good sign to exit such stocks is if you have made decent profits within a few weeks, as there are high chances the stock price can crash. Concerning such stocks, there will be only a few research reports to direct you in the right direction. Also not many buyers would be available when you want to sell. And these stocks can hit circuit filters easily, impacting liquidity and restricting exit.