Hello Readers, We’ve always seen that the market taking an upward turn and we’ve also seen them taking a downward turn but the most interesting thing is what should we as human beings respond to the market when it is continuously falling.
Let’s first examine the situation on the ground level, the market always falls sharply, it’s like a panic landing right what happens is when we look at the market. What happens when sudden thousand points follow two per cent down right.
Now there’s a lot of negative news going around in the market everyone’s saying oh my god the market is crashing some people will say that it’s a market correction. Some people will say this is the end of the world stock market.
What do you do as an individual because you’re only looking at negative news all around and everything’s RED everything’s falling down and your portfolio now looks very red as well.
At this point, what do you do with our portfolio?
The simplest and easiest solution for an individual investor like you is to not do anything.
Immediately don’t do anything I know everything is looking bad I know your portfolio looks really red and you really want to sell and you’ll see be seeing news that might say that tomorrow be getting it’ll fall another five days do not do anything right the main reason.
The market is not always driven by logic and decisions, it is driven by investor sentiments.
Sometimes when the market goes down too much it usually tends to bounce back in the upward direction and doesn’t keep going down for a long period of time unless something really has gone wrong in the world.
The first thing is that a lot of people get caught in is this negative wave. You must avoid getting caught in this negative way. Don’t sell anything just because the news channels tell or your friends are telling.
An intelligent investor should trust in the resilience of the portfolio and stay steady because if you’ve done your research and you know that you’re holding some fundamentally strong stocks then what’s the point of you selling out in this panic.
Be mindful not to get caught in this emotional selling mentality.
You know for a fact market will eventually, rebound how many times has the market fallen down in the last year?
A lot of times right but eventually it comes back up. You see how the market slowly comes back up over a long period of time the Nifty has always gone up.
Market Fall is an Opportunity for you
From an advantage perspective or an opportunity perspective so the first thing you need to do is first assess the situations right.
- What is happening?
- What are the factors because that market is falling?
- Does this affect the companies in which I am invested?
You should take advantage and start buying right now when the market is fallen.
Warren buffet had also said very clearly that
We should attempt to be fearful when others are greedy and to be greedy only when others are fearful.
if you are looking at a market crash it is actually an opportunity to get good stocks at lower prices and your cycle and you should cycle that allocation from other asset classes.
Use cash reserves and buy stocks at a bargain so if you have kept a lot of cash or some fixed deposit and you see the market has crashed a lot this is when you remove money from there and start buying stocks at a massive bargain.
Best time to start SIP
The market is crashing or coming down then it is the best time to start mutual fund invets9ing or direct stock through SIP investment. You will be getting all the stocks at much lower prices and in a long run, you are average your position.
The profits will be more when you start early and at the lower.
Want to invest in a mutual fund then you can go with Coins by Zerodha. I am using Zerodha for the past 2 years and I am very comfortable using this. Zerodha offers many other platforms and learning as well. So it’s your time to invest.
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The market fall or correction is a part of the game. Never be in a panic mode. We are here to make a profit, wealth from good companies in a long run. Trust your analysis and stick to the game.
Have any questions? Let me know in the comment section.
Thank you. Happy Investing.