REVIEW · Reflect
Lesson 27 · Sunday Scan
LESSON 27REVIEW · Reflect

The Sunday Scan — 30 minutes that compound

Investing is only half about decisions. The other half is the small, steady habit of checking in. Today: a 30-minute Sunday ritual that keeps you connected to your portfolio without becoming obsessed with it.

A peaceful Sunday morning verandah — chai, newspaper, notebook.
In 30 seconds: Once a week, on Sunday, spend 30 minutes scanning your stocks, the market, and the headlines that matter. Four sections, 30 minutes total. Not enough to obsess. Enough to stay connected. The compounding habit of patient investors.

Why Sunday, why 30 minutes

Markets are closed on Sunday. Your emotions are calmer because nothing can move. You can't accidentally panic-buy or panic-sell. You're forced to read, observe, and reflect.

30 minutes is enough to do the four sections below. An hour leads to over-thinking. Less than 15 minutes leads to skipping things. 30 minutes is the calm middle.

The Sunday Scan checklist

⏱ Total: 30 minutes
1
Section A · Your stocks (10 minutes)
For each stock you own: price change this week, any news headlines. Skim — don't analyze. You're checking that nothing serious has happened that needs your attention.
10 min
2
Section B · The bigger picture (10 minutes)
Sensex and Nifty for the week. Up or down? Major news drivers? Any sectoral rotations? Use moneycontrol.com or livemint.com for a clean weekly summary.
10 min
3
Section C · Macro (5 minutes)
Anything important on the macro side? RBI announcements, inflation data, oil prices, monsoon updates.
5 min
4
Section D · Watchlist (5 minutes)
Two or three stocks you're studying but haven't bought yet. Did anything change this week that affects your view? Updated data on screener.in for any of them.
5 min

What the Sunday Scan is NOT

It's not for trading. It's not for making decisions. The Sunday Scan is for awareness, not action.

  • Don't sell during the scan — if a stock has dropped 15% this week, that's a signal to dig deeper later, not to act on Sunday
  • Don't add positions during the scan — those decisions belong with your full trade plan, not a quick weekly review
  • Don't read tip channels during the scan — stay with primary sources (screener.in, moneycontrol.com, livemint.com, BSE/NSE)

Why the habit matters more than the analysis

The biggest gift of the Sunday Scan isn't the information you gather. It's the steady relationship you build with your portfolio. Most beginners check their stocks 20 times a day during good weeks, then disappear during bad weeks. Both extremes are unhealthy.

30 minutes once a week, every week, is the calm middle. You stay connected without becoming obsessed. Over years, this rhythm protects you from both panic and complacency.

Patience is the rare resource

Most people can do the seven signs, write a trade plan, even buy in instalments. Few can do these things consistently for years. The Sunday Scan is the small habit that makes consistency possible. 30 minutes a week. 26 hours a year. Multiplied across decades.

Try this — pick a Sunday time and stick to it

Pick a specific Sunday time — say 10:00am, after morning chai. Block it as recurring on your calendar for the next year. Whether you have stocks or not. The habit of showing up matters more than what you do during the half-hour.

प्र
प्र Pragya's note
I'll be honest about what doesn't work — and what does. Watching the market every day doesn't help. Reading every news headline doesn't help. Posting in WhatsApp groups about stocks doesn't help. What helps is 30 minutes once a week, when nothing can move and you can think clearly. Most successful long-term investors I know practice some version of this. They don't trade. They observe. The trades they do make are slower and better.
🔓 What you just unlocked
  • Why Sunday is the right day for portfolio review (markets closed = clear mind)
  • The 30-minute scan in four sections: stocks, market, macro, watchlist
  • What the Sunday Scan is NOT — not trading, not deciding
  • Why the habit matters more than the specific information
LESSON 28REVIEW · Reflect

The quarterly review — the matured FD principle

Once every three months, you do something deeper than the Sunday Scan. You ask: "If this stock were a fixed deposit that just matured today, would I buy it again?" The matured FD principle. The single best discipline for long-term investors.

A four-seasons composition — the quarterly review.
In 30 seconds: Every three months, look at each stock you own. Ask: "If this matured today like an FD, would I reinvest at today's price?" If yes, hold. If no, exit. Most beginners hold by default. The quarterly review forces a deliberate yes or no.

Why a quarterly review

The Sunday Scan keeps you aware. The Quarterly Review forces you to make decisions. Aware-but-passive is most beginners' state — they know roughly what's happening but never deliberately decide whether each stock still belongs in the portfolio.

Indian companies report results quarterly — typically in April, July, October, January. Doing your own review a few weeks after each cycle gives you fresh data to evaluate against. The cycle of the company becomes the rhythm of your discipline.

The matured FD principle

★ The principle
Treat each quarter as if your stock just matured

Imagine each stock you own is a fixed deposit that just matured. The cash is in your hand. Now you ask: at today's price, would I put this money back into the same stock?

If yes — hold. The conviction is fresh. The reasoning is current.

If no — exit. Why hold tomorrow what you wouldn't buy today?

This single question reframes the entire mental model of investing. You stop thinking of your existing positions as "things I already own" and start treating them as "things I'm choosing to own each quarter." The choice becomes deliberate.

What a quarterly review covers

For each stock, ~10 minutes of work:

  1. Re-run the seven signs. Do they still pass? Has anything shifted?
  2. Read the latest quarterly results. Did profit growth continue? Was guidance changed?
  3. Listen to (or read) the management commentary. Is the story still consistent?
  4. Check shareholding changes. Are FIIs and DIIs still increasing or decreasing?
  5. Apply the matured FD principle. At today's price, would you buy again?

If you own 5-7 stocks, this takes about an hour. Spread over a Sunday afternoon, with chai. Not stressful — reflective.

What to do with each verdict

  • Strong yes — hold or even add via instalments to your existing position
  • Lean yes — hold but don't add; watch carefully next quarter
  • Lean no — start to reduce; the conviction is wavering
  • Strong no — exit. Move the capital elsewhere — even if just to cash for now
The hardest case: a stock up 50%

The matured FD principle is hardest when a stock is up significantly. "Would I buy at this higher price?" The mind resists — you don't want to sell what's going up. But this is exactly when the discipline matters. Sometimes the answer is still yes (the business has gotten even stronger). Sometimes it's no (the price has run ahead of fundamentals). The honest answer protects you.

The hardest case: a stock down 30%

Equally hard when a stock is down. "I'll sell when it recovers." This is the language of regret, not analysis. If the answer to "would I buy today?" is no, the answer is to exit — even at a loss. Holding a fundamentally weakening business in hopes of recovery is the most expensive mistake from Lesson 26.

Try this — set four reminders for the year

Set recurring calendar reminders for mid-May, mid-August, mid-November, mid-February — about 4-6 weeks after each Indian results cycle. Even if you have no stocks yet, the rhythm becomes the habit. When you do start investing, the structure is already in place.

प्र
प्र Pragya's note
The matured FD principle is the single most useful mental model I know for long-term investing. It cuts through both the inertia of holding losers too long and the complacency of holding winners without question. Every three months, you renew your relationship with each holding — deliberately, deliberately, deliberately. Most retail investors hold their portfolios on autopilot for years. Then a bear market arrives and they realize they never really chose what they own. This is the discipline that prevents that drift.
🔓 What you just unlocked
  • Why "aware but passive" is the default state of most beginner investors
  • The matured FD principle — your single most useful mental model
  • The quarterly review process — five steps per stock
  • How to act on each kind of verdict
  • The hardest cases — stocks up 50% and stocks down 30%
LESSON 29REVIEW · Reflect

When to exit — four valid reasons, and many bad ones

Selling is harder than buying. You feel both regret and doubt regardless of which way the stock has moved. Today: the four valid reasons to exit a position — and the many bad ones that quietly destroy returns.

A doorway in soft late-afternoon light — knowing when to exit.
In 30 seconds: Four valid reasons to exit a stock: the business has weakened, your goal is reached, the position has grown too large, or you need the cash for life. Many invalid reasons exist — boredom, panic, news, peer pressure. Knowing the difference is half the discipline.

The four valid reasons to exit

Reason 1 · The business has weakened
The seven signs no longer pass. Profit growth has stalled or reversed. The competitive advantage is eroding. The new development you bet on hasn't worked out. This is the most common valid reason. Exit — even at a loss — and redeploy the capital. Hope is not a strategy.
Reason 2 · Your goal is reached
You wrote your goals in Lesson 5. If a position has grown enough that you've reached one of your specific goals — your child's education fund, the down payment on the flat — convert it. You bought the stock to reach the goal, not to brag about returns.
Reason 3 · The position has grown too large
A great stock that doubles can become a worryingly large fraction of your portfolio. If a single position is more than 15-20% of your wealth, trim it back to a comfortable size. Even great businesses can fall 50%; concentration risk is real. Selling some of a winner is not failure — it's prudence.
Reason 4 · You need the money for life
Medical emergency, sudden job loss, a once-in-a-lifetime opportunity (a property at the right price, a business investment). Selling stocks for genuine life needs is fine — that's why you invested in the first place. Don't apologize for it. The money was always meant to serve your life.

The many invalid reasons to exit

Invalid 1 · "It's been flat for months, I'm bored"
Boredom is the most expensive emotion in investing. Great stocks often go sideways for 12-24 months before rising. The investors who hold through the boredom capture the gains; those who exit lose to the next wave.
Invalid 2 · "The market is going to crash"
If you genuinely knew the market was about to crash, you'd be the richest person in the world. Nobody knows. Selling everything because of a market prediction is the most expensive form of guesswork.
Invalid 3 · "Someone said it's overvalued"
Analysts, YouTube influencers, and family members will all tell you a stock is overvalued at some point. Their conviction has nothing to do with your trade plan. If your own seven-signs analysis still passes, theirs is irrelevant.
Invalid 4 · "It dropped today and I'm scared"
Fear is a feeling, not data. If the underlying business is fine and your trade plan is intact, a one-day drop is not a reason to sell. Look at the matured FD principle from Lesson 28 — would you sell a strong business just because the price moved 6% on a Tuesday?
Invalid 5 · "I want to lock in profits"
"Locking in profits" feels prudent but is often expensive. If the business is still strong and the matured FD principle says yes, the right thing is to keep holding. A great stock might quadruple from here. Selling at the first sign of profit caps your upside permanently.
Invalid 6 · "I want to switch to a hotter stock"
There's always a "hotter" stock. Trading good businesses you understand for hot stocks you don't is how most retail investors underperform. Stick with what you've researched. Add new positions only when they pass the seven signs — not by exiting old ones.

How to exit when you do exit

When the reason is valid, exit cleanly:

  • Don't try to time the perfect price — once you've decided to sell, sell within a few days, not weeks of hesitation
  • Consider partial exits if the position is large — exit one-third now, one-third in two weeks, one-third in a month
  • Don't watch the price after exit — if it goes up further, you'll feel regret; if it goes down, smug; both feelings distort future decisions
  • Update your trade plan — note the date, the price, and the reason. Future-you will appreciate the discipline.
Tax considerations

In India, equity holdings beyond one year are taxed at a lower long-term capital gains rate. If you're close to the one-year mark, sometimes waiting a few weeks saves you 5-10% in tax. Don't let tax tail wag the investment dog — but be aware. We'll keep tax details high-level here; consult a tax professional for specific situations.

Try this — write your exit plan now, not later

For any stock you currently hold (or are considering), write down what would make you sell. Be specific. "If profit growth turns negative for two consecutive quarters, I exit." "If the stock reaches ₹X, I sell half." "If RBI raises rates by more than 50bps in 6 months, I review." Pre-deciding makes future selling clean.

प्र
प्र Pragya's note
Selling well is harder than buying well. I've held losers too long out of hope, sold winners too early out of fear, and exited businesses I didn't understand because of someone else's panic. Every one of those mistakes cost me money I'd worked hard to make. The four valid reasons above are the only ones worth listening to. The invalid ones are emotions wearing the clothes of analysis. With practice, you learn to tell them apart. Until then, when in doubt — hold and review next quarter.
🔓 What you just unlocked
  • The four valid reasons to exit a position — clean, deliberate, defensible
  • The six most common invalid reasons that destroy beginner returns
  • How to exit cleanly when you do exit
  • The complete REVIEW phase — Sunday Scan, Quarterly Review, exits
  • You now hold the full Stop · Think · Trade · Review framework