Yes Bank Stock: A Traders Delight

Traders love volatility, as it allows them a greater scope to make profits. In fact, it does bring losses as well, but, volatility is the key for a trader.

The Yes Bank stock is now becoming a traders delight and is likely to remain so, until things stabilize. On Friday, the stock dived to as low as Rs 5.5 and swifty recovered to Rs 10 and then when to touch Rs 16. It enabled investors triple their money in a single day, which is actually unthinkable. Nowhere does one get such volatility, and ability to make money, except the stock of Yes Bank. Having said that, the converse is also true. Those who invested at the Rs 35 levels on Thursday, may have been shattered to see the price fall to the 5 and 6 levels, significantly eroding their investments.

Not for the faint-hearted trader

However, the Yes Bank stock is not for the faint hearted trader. In fact, if you do not have an appetite for risk, stay away from the stock. For those who have been bullish in the stock for the last few years, most of their trades may have resulted in massive losses. On the other hand those who have constantly shorted the stock of Yes Bank, have made a bountiful.

Retail investors who were bullish have been the biggest victims of losses in the stock. There are many retail investors, who have invested at higher levels of Rs 200 and Rs 300 in the stock and are now having this stock that can be well termed as a penny stock.

What's most interesting is that many investors who have been veterans in the stock markets have got stuck in the stock of Yes Bank. In fact, the brand equity has been such that many investors wanted to hold it in their portfolio for the long-term.

This is one story that has gone awfully wrong, though the lure of a strong brand equity could not withold even the most astute stock market investor from investing in this share.

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