Whenever a market goes down 20% or goes through a correction of 20%, it
feels like a correction. It’s not a recession.
Recession means that the
economy of a country or the world is growing negatively, which means
that it has been growing for two consecutive quarters.
The US
economy actually declined by about 1.3% in the last quarter, if another
quarter declines then officially, the US is in recession.
India is still
safe. India is the one of the fastest growing countries in the world.
There’s
a lot going on here, but there’s also a huge improvement in our market,
and these things that are happening globally.
Some important points to note during volatility
1) Diversification (never put all your eggs in one basket)
2) Hedging (It’s like insurance for your portfolio)
3) Be patient but don’t be foolish (sometimes it is better to sell your capital instead of recovering)
How to deal with bear markets
Save Money – Please save as much money as you can. Since this inflation is getting higher, meaning things are getting increasingly expensive, whatever you’re spending money on isn’t needed, you’re spending too much money, and the money that You have saved for investment, for your future.
Invest regularly – We cannot time the market. Many people think, ‘The market will go down even more.’ But when it starts going up, they say, wait! It will go down!’ You don’t want to do that. You are not an expert, so don’t try to time the market.
Convert lump sum amount to SIP– If you have lump sum amount or you have broken your FD, it is good that you have broken it, then you can convert it to SIP. Convert 60% amount into 6 identical SIPs.
Make safe investments– Don’t invest only in equities. You can take risks, but it’s also time to diversify. Try exploring other asset classes as well. For example- debt or fixed income, commodities like gold, and equity.
Long Term Focus– This is not the time to earn money overnight. In fact, no period should be for making money overnight, but especially this period can be very harmful, as it is going to be very tempting. Just note how much return you can earn in 5-10 years.
If you have some investments and it’s negative don’t panic and sell them – If the market is very volatile. There will be ups and downs. So don’t panic in log term it will give good returns. Only if you have invested in good stocks.
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How do you select the risk reward ratio in intraday trading
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Where do I get to learn intraday trading
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