Markets looking Forward (22nd Feb 2021)

I know todays fall would have left many of you worried. Now this is to say clearly to everyone. This fall does look worrisome to many. However I would suggest to everyone. If you are dealing in cash then you needn't have to worry. Even when the market is going down at this point, or even let us assume that the market will correct heavily. Even in that case you are going to get your exits. It never happens that way, nor will it happen that way that market will suddenly start sliding down.

I even saw some of the messages that there are people concerned that there is going to be a second wave of Corona virus. Now guys you need to comprehend this thing. When Market slid the last time, Corona virus was a new thing and a new fear. Today we have got the way and even the medicine to deal with the corona virus. So no point getting in panic mode because of that. Now even if markets fall, the reasons will be different. However be assured for one thing. The recent fall of Corona Virus which we had a year back, is still fresh in the memory of people. So people will be a lot more cautious. So as far as I think and what my experience says. We might get a dip or even a healthy correction from this point. You need not to worry at all. This is all a part of market cycle, and if you have to make money you will have to be ready to go through all this cycle.

There will be times where you will be sitting on 5-10% drawdown on some of the stocks. You must sit patiently at that time and wait for the cycles to turn. However you have to make sure you do not have some serious drawdown. In case of any serious drawdown, you can always save your money, book some loss and wait for better opportunities. There is a common trait in everyone to keep hanging on to losers just under one hope that someday it will come under cost. That does not happen. In that process you end up losing some really good opportunities. And also remember even in the case when market goes down, there will always be some stocks and sectors which will be in bull market and also in clear uptrend. Our job is to just spot them and jump ships to them and eventually we will make money in the longer term.

I can understand where the fear of stock market taking away your money comes. Mostly by people around you who tell that Market is gambling and they have lost a lot of money in the market. Guys, I have a simple answer to all such people, If you do not know how to drive and you start driving, what will happen, you will have an accident. Similarly its the way in markets, people take their success in other fields to be granted and think that the same success will be reflected in the stock markets. Guys clearly note this down, market does not know you. Nor by name and nor by face. So never blame markets for your ignorance or your loss. Understand your mistake that somewhere it was your mistake. For being a doctor you spend 10s of year training, for being a lawyer you take 5 years of course for being an engineer you take 4 years of course. But when you come to markers you do not prepare for it and just jump into the sea and start to fight to stay afloat. Give some time to learn and understand the markets and thats when you can come back to the markets and of course with little bit of discipline you can make a fortune.

Also, some people deploy their entire money in one trade and then take the loss and never to return. Guys, understand with the same analogy. If you are a Doctor you are not going to have only one surgery through your career. You will have thousands or even millions of sugeries or patients in your entire career. Similarly being a lawyer you will fight thousands of cases and some you will lose and some you will win. Your success will never be determined by the bad cases or surgeries or bas cases that you take. It will be measured on the hundreds of thousands of cases and sugeries that you perform. So why act in a way where you are not going to take any trades after that or as if the markets are not going to be there tomorrow or day after tomorrow. Always remember that markets were there even before you were there and will be there even after you are gone. So realise the timelessness of the markets and the opportunities that markets give. Probably markets are the only places where you have opportunities everyday and does not matter whether you lose an opportunity today. Tomorrow you may have fresh opportunity.

You need to learn that every adversity brings an opportunity, so if the markets are going down, its not the time to panic, rather its the time to start looking for opportunities. So be assured its not the time to panic rather its the time to sit patiently and be watchful, as where the new opportunities are popping up.

With this note I hope you had a good read. Do leave a comment and feedback if you like the above writeup.