Whenever markets start to fall, there is a lot of news starts happening around us, and people try to give him, their own mind and try to push it their thought process in your mind. Please be aware, please be learned and helped me to improve the overall financial literacy in India, don’t fall into for all these superstitious things be a learner educator, or be a learner investor. Stock Market Strategies.
1) So very First strategy in a bear market can be evaluate your risk tolerance, whenever you start investing in the stock market. Everyone out here, generally says that I will try something new. I will try to invest in the stock market. No one owns a lot of money in the beginning, so they are mentally prepared that there could be some losses, there is a possibility of good gains and everyone is on that happy ride that yes now we are stock market investors, they do on some money when the markets are going up we have seen a fantastic bull rally, since 2009 as well. But now you might have seen that due to coronavirus, and due to a very latest news which came up yesterday in the market regarding yes bank, there has been there have been two big crashes in the stock markets on back to back to back Friday’s.
Stock Market Strategies..
Well, the day is not relevant, it’s just the news which is causing the impact on the stock market. If such news are not able to give you a sound sleep, then it means that you have invested more in the stock market than your risk capacity. So it happens that when everything is going on. Fine. You are very much happy about the stock market investment, but the moment marks market stock starts to crash and you see your portfolio in red, then definitely one song please back in your mind Nene Terai Merry Christmas Oh Santa Tony told me. So valuate your restaurants and be, again, an educated investor.
2) The Second strategy. You can definitely think about hedging your position using futures and options. Well, till date, I have not talked about futures and options on my channel. I have received a lot of requests about futures and opposite options. Still, I want you all to comment in this video, if you really want me to make a separate video about it the basics of futures and options are also about advanced portion of futures and options do let me know in the comment section. But as of now, just let me know if you know these two options know these two concepts.
Number one, you should ideally, go short, if you see the falling market so you can short the futures.
Number two, you can buy puts, okay, buying push comes up in options, and if I’m talking about futures, you generally short, the nifty. Okay, I’m sure, for those who are, who have just entered the stock market last few seconds we’re like completely alien language. It’s okay, futures and options is a little bit advanced, but for those who are already in the market. It’s a very good thing to do. If you have invested in equities, and your market portfolio is going down. How can it be hedged simple hedge by using a put option, you should buy a put or, as I mentioned, you should do a short selling for your futures. In the nifty. So if the nifty falls automatically your profit increases. So this increased profit compensates for the loss of amount in your portfolio. Again I’m repeating for those who are new to the stock market this strategy number two might be a bouncer for you, but it’s okay, just try to read a little bit on futures and options, and if you still don’t understand. Don’t worry, Mehanna. Stock Market Strategies
3) The Third Strategy Friday, could be maintaining a good level of liquidity. It’s very important that in falling markets you never miss out on an opportunity to invest more in the stock market right now what is the position about sub markets. Technically speaking, the market has broken, all the solid, technical supports. That is the reason why market has been falling like anything bad news also are coming in. The first bad news which came in the market was coronavirus. If you remember, I had talked about this coronavirus impact in my previous video about HDFC AMC video which was released, just on the previous Saturday. If you have not watched that video, you can click on this icon and check out that video but of course after reading this right. So, this one is important, that news, always impact the stock market.
Long Term Investment..
It could be a short term impact but if the market is not able to revive itself. If it breaks the second support as well. There is a great chance that the market falls further. That’s what has been happening in the last one week, more and more bad news inflows are coming. I’m sure everyone has read about what happened with US Bank. If all these things happen, then you should be in a position to enter into the markets in a very very small quantity. And for entering into the market you should have ample amount of liquidity. So as a simple camera, what I do, I will tell you so that’s my secret.
4) The Fourth Strategy is If you have to say. One lakh rupees, don’t invest.
Always invest in one. so this will give you an opportunity to invest your next business or pocket. Whenever the market has fallen, those corners, averaging it out in the stock market average cost price becomes more and whenever the market starts to pull back on profits. Stock Market Strategies
Let’s move on to our next study, and the study is to study. A question is what is to be studied studied up past what happened in the past is very important.
Remember 1992. There’s a Harshad Mehta scam, because of which market fell a lot. Do you remember there was a big.com bubble which bursted in 1999, and there was a huge market crash. Remember 2008. There was a big subprime crisis because of which markets again fell a lot, what happens during these falls. It happens that majority of the investors start feeling that the market is crashing, crashing, crashing 101 one to zero. Please, it’ll never happen it will not go down to zero. There has to be some point after which the markets will revive. And did they revive in 1992.
Yes, they did. Did they revive in the 1999 problematic situation, it did. Revise post 2008. Yes, it did. And will it revive after what is happening today, it has to revive, so be patient, study what went wrong in the past, how the markets recovered. What was the strategy which few people adopted to recover, or to benefit during such up moves down moves. So if you study a lot. You can definitely earn both during fall, as well as in the optics, but question is how to study. You can study the past, using various books or whatever there are, as far as reading CRR lectures, which are available. That’s my website, personal run a.com, go and check it out.
5) The Last or 5th Strategy is to know how to understand when to do nothing. There’s something called as wicks. Not that VIX is volatility index. Okay. And for India the volatility index is specifically available on the net, you can just search volatility index India. So that’s the short form is VIX.
Whenever VIX is very high VIX very high is somewhere around 24 2020 and above, I can say it’s a very high VIX Okay, what does it mean volatility is nothing but, ups and downs in the market. so higher volatility index it means that the ups are higher lows are higher. You will see a big movement, either intraday or during the days. If you are a risk averse person, it means that if you don’t want to take that much risk. Stock Market Strategies
Avoid do nothing, stay away from the market, whenever VIX is above. And as I mentioned, how will you understand that this Google will find it, that if it is moving or Vicks, if it is about 20 do nothing. Stay away. Stay safe, I guess, I hope you have enjoyed.
Hi, very nice website, cheers!
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