One of the biggest challenges when investing in mid-cap stocks is not about the price of the stock moving up and down. It is about the management of one’s own expectation and anxiety level. When the market witnesses volatility like they did on Friday, the anxiety index goes up. So, when looking at mid-caps, there are some must do things, from two perspectives. First, the stock selection and the way one takes exposure to the stocks so that the probability of making money in the long term increases; and secondly, ensure that one’s own anxiety index does not shoot up. Given the fact we have the budget coming this week, there is a high probability that we might see higher volatility and it becomes important to have checks and balances so that wrong decisions are avoided.
