InvestorQ : Despite dismal share price of around Rs 0.50 how is someone is able to sell the shares of Rcom. I want to know what is making people buy it? In last 2 weeks around 90lakh shares of Rcom changed hands.
Rohit Kashyap made post

Despite dismal share price of around Rs 0.50 how is someone is able to sell the shares of Rcom. I want to know what is making people buy it? In last 2 weeks around 90lakh shares of Rcom changed hands.

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Riya Dwivedi answered.
2 years ago
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That is nothing surprising. Lot of small and medium investors and traders tend to bet on low priced stocks. They believe that either the stock is too cheap or they believe that their downside risk is very little. For a stock at 50 paisa, you hardly need any investment so even small investors get attracted. Most people think that if 50 paisa stock moves to even 1 rupee then it is a 100% return. That is the kind of returns you can never in large and well established companies in a short span of time.

However, that is not a very good trading strategy. When you buy such stocks at low prices, you must be prepared to lose the entire money. Only then buying such stocks can be a good idea. Instead, you must focus on buying good stocks regularly or going through an equity mutual fund for safe long term wealth creation.

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