But in CSE recently I have seen this strategy does not work well.
Eg 1 - ATL was at 4.10 LKR and after right issue announcement this dipped to 3.50 LKR and after few weeks now rising up to 3.90LKR
Eg 2 - PCH went up to 23 LKR level before the price band and drained down to 13 LKR levels before shooting up to 32 LKR.
Its true using this strategy you can get a affordable loss and reduce opportunity cost by shifting the money into another winner shares. There are advantages and disadvantages,
So what do you all think about this strategy ? how many of you all use this strategy ???