We all keep reading 'Protect your downside, the upside will take care of itself". But what does it actually mean?
First of all, it has nothing to do with the 52 week low of the stock.

Some pointers to keep in mind:
> Know what you own
> Avoid stocks with history of corp gov issues or weak accounting
> Check if future growth is already priced in the stock (by applying historical p/e to estimated future earnings)
> Check if earnings are cyclical (dependent on price of product/raw material) & whether it is trading at peak multiples on peak earnings
> Check if price has gone up just becoz some large or reputed investor has bought stake
> Be careful of lenders which are growing very fast (keep an eye on asset-liab mismatch)
> Be careful with sectors that have destroyed wealth historically
> Be extra careful with flavour of the season stocks (e.g. EV/Platform/Renewables etc). For e.g. if one is excited on China+1 theme, he has to track developments in China very closely

Views are welcome