WHAT TO DO WHEN STOCK MARKET FALLS?





WHAT TO DO WHEN STOCK MARKET FALLS?

Friends over the last couple of days markets have been falling continuously, this has resulted in the erosion of several crores of investors wealth .

So should you sell off everything and book losses or sit on the sidelines waiting for the markets to be stable , or pump in more moolah at these levels.

If you are confused what to do in this scenario and looking for answers , you have landed up at the correct place .

Friends markets have been BLEEDING continuously for 3 days now because of the weakness in rupee and increase in crude oil prices.

So what should you do now? Here are some tips that will definitely help you if you are a beginner in investing.

1. STAY AWAY FROM TELEVISION.

You know who makes one of the best use of the opportunity when market falls ?

Don't know ? , it's the TELEVISION CHANNELS , they make a great use of the fear that is spread in the hearts and minds of the people . All they want is to feed upon the negativity in the market and increase their TRP ratings.

Here they call people ( so called experts) to their respective shows , and there they go blah blah with random advices of buying and selling.

But my question is why you want to be told by a second person , what to do ? If you have invested in a good company you need not worry.

See friends , you have to understand one thing it's not just you whose portfolio is in red during such times . The likes of highly experienced investors like mr jhunjhunwala or mr porinju must also be experiencing the same plight.

So the first thing that you need to do , during such times is turn off that idiot box and stay away from all the negative news .

2. MAKE USE OF THE OPPORTUNITY TO BUY QUALITY STOCKS.

See friends, stock market is a place where there will be volatility, and if you can't digest this volatility then you shouldn't be at this place.

Everytime there is a correction in the market it's an opportunity to buy some of the good stocks at a cheaper level.

I would like to quote MR BUFFET here '' you should be fearful when others are greedy , and greedy when others are fearful "

By this he meant , when there is panic in the market you should buy more.

But the sorry state is that most of the retail investors do the opposite. They enter the markets at high levels and start selling when market falls , leading to heavy losses.

Right now there are plenty of stocks that are trading at a good valuations.

So guys brace up for some serious stock shopping .

3. BEHAVE AS OWNERS OF THE COMPANY.

At the first hand if you own shares in a fundamentally strong company and have plans to hold them for long term , you need not worry by the price swings.

Friends when you own shares of certain company, you technically become the owner of the same.

So when markets are sliding you should think and BEHAVE like an owner.

Let me ask you a question , will you sell your business during tough times or will stick to it. I'm sure you will stick to it.

So next time don't press that panic button, and accumulate more shares .

4. BUY SHARES TAKING INTO CONSIDERATION THEIR FUNDAMENTALS AND FUTURE DEMAND.

Friends when markets are sliding down , you would see many shares will be available at dirt cheap rates , but you have to buy only those stocks which are fundamentally strong.

Many people have the habit of buying stocks looking at the 52 week low. Never make your decision on this basis alone otherwise your portfolio will be full of junk stocks .

5. DON'T SELL YOUR MUTUAL FUNDS.

friends many of you would be investing into markets via sips.

Again the common tendency of the novice investor is they sell off their sips when market starts sliding.

This is the most stupid thing to be done , you should continue with your sips as the situation allows you to buy more number of units which helps in rupee cost averaging.










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