A long trade when market is turning up from the severe sell off post the Corona Virus pandemic. This trade had a 4.62 R reward potential, which closed with 2.89R after 3 up freeze and a Freaky Extreme signal on the Force Index.
As people are staring at losses from mutual funds, the truth is that mutual funds never give losses to its investors. It is the investors who create those loses due to impatience. Staying invested throughout a cycle always helps investors take profits out of their investments. Any crisis gets eased out over time and we get back to normal. If an investor has panicked in 2008 after investing in 2007, he would have booked 60% loses. Instead, if he had added another 50% to his investment when the market was down & stayed invested for 10 years. He would have made 200% returns.
A similar condition exists now, Corona has locked the whole world. It will get back to normal and SENSEX will reach 1 lakh in 10 years.
It is time now to add to your investments as it is available cheap now. It will help you get another 200% returns in the next 10 years.
Notional loses made in an aggressive asset cannot be made good from a conservative asset like FD. Today if you remove from Mutual funds and move to FD, it will take 10 years to get back the losses. Rather stay invested, you will double your investment in the same period.
All of us know that there is a big profit-making potential from investing in Stocks. Who makes all the money from stock investing? There are 4 segments of people operating in the Stock Market. 1. Jumping Jacks 2. Novices 3. Professionals & 4. Fund Managers Jumping Jacks come in at the extremes and lose always. Novices come with big expectations, take help from everyone, don’t have their own knowledge end up losing. Fund managers come with the best of talent, research and backing of big fund houses, face the challenges of impatient investors, though they make money for their investors, they are always controlled by the investor emotions of fear and greed. Professionals, who were cut out from all of the three segments, commits and works to find a process for themselves, follow it with discipline and make the best out of the markets. All the other 3 feed to the gains that Professionals or Smart money as it is called by the industry, make for themselves.
Post the market crash, it is an opportunity to invest in the markets. What was the reason for the crash? Was it required? Who needs to move out? Who has the opportunity? Should you pick up stocks because it is cheap.
Market crash post-Saudhi Arabia pushed crude prices down to take control of Oil Cartel. It also got supported with the deepening CoronaVirus presence on the global front.
There is no need to sell, because there has been no deterioration in the fundamental strength of the country. If we had to sell, should have sold when the market was at 42000, not when it is down 15% because it is an opportunity to buy more.
Epidemic too is not permanent, we had a similar event in the form of SARS in 2003, which was stronger in impact, while it is 17 years past the event and we are living happily today. Markets are up 600% from there.
It is time to buy and not to panic.
Collapse of Yes Bank has created concerns about what and whom to believe conditions throughout the country. Why the Bank failed? Who were affected? What is the resolution to the Bank? Which funds have lost money? What actions should investors take? All these questions answered with guidance to safe investing & better returns
A short trade done in NTPC using the Triple screen method. Setup with indicators for entry, risk calculations, execution, managing along with exit criterias & records explained.
Markets are down globally, coronavirus was a coincidence to have been in support to the down trend. Otherwise, market is on its flow, it had developed weakness in early January. New High New Low index shows oversold condition and it is a good time to invest. Off high low index also shows signs of weakness. When market is doing what it has to do, why are people in panic?
It is only those who don’t have an objective on what they want from the market are in panic.
If you don’t have confidence or comfort with what you are doing, don’t do it. If you don’t have control on what outcome that you are wanting to have, don’t expect. Doing both of these will ensure to ruin your capital.
Market offers opportunity to each and every participant, only that you should know how to grab it. If you don’t it will grab your money even before you realize your conflict.