Investment And Finance

To begin with Indian indices was at all time high in early Jan 2020,  Nifty was 12300 plus

It’s lost about 36 % from the all time high and we are not looking into individual shares where the loss has been much higher.

So what really happened between Jan to March was the severe impact of deadly coronavirus combined with other factors …. I repeat the Other Factors which lead to these losses.
Retail investors generally don’t have sufficient information about The Other Factors to take a timely action on their portfolio and they get trapped in this fall.

Remember ‘ Investing is about putting Capital to work when the reward outweighs the risks.’

  1. Price fluctuations are part of this market, use them to your advantage to add a stock and do not panic to sell the stock without verification. 
  2. Markets are not here to shutdown , it will remain forever, so will be the opportunities, buy a good company at the right price and not a good company at the wrong price. 
  3. Never buy on rumours and never ever on overheard talks. 
  4. Definition of risks will change when reality hits upon the prices of your investments, so be prepared to buy more or sell if market movements change.
  5. Don't chase unnatural profits. 
  6. Loose information is freely available in the market, never rely upon them...
  7. Don’t blindly follow portfolio managers , newspaper articles , and clone your investments. Everyone has a different agenda behind the same stock, never imitate with half information or verification.
  8. A reliable source of information many not be always right or may not be available for the first time, don’t let sensitive data available freely on the Internet or national newspaper affect your decision, as this news may not be true or may have come late to your attention

Investors need to be alert and knowledgeable and well educated before deciding to invest.

Most of the Small and retail investors are new to equity investing, and have never seen a bear market or prolonged phase of degrowth or negative returns.

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