10 WORST THING YOU MUST AVOID NOW IN STOCK MARKET

10 WORST THING YOU MUST AVOID NOW IN STOCK MARKET

On friday 13 march 2020 it was a historical  day in stock market   lower circuit in nifty at 8555 and then close at 9955.. high 3.81 %.. Volatility is at its highest level.A retail investor/trader is worried these days.. As most of retail traders are not earning money in tradiing due to ultra highh volatility.. Investors are worried about there long term investments. gain of three years wipeed out in just 11 days..
so  there are 10 important  points to be followed in such a volatile market..

1 Do not stop investing...

if you are a long term  investor better to continue your long term investments. if u r investing through sip mode in mutual funds.. increase your sips at least by 10% .. it will give a very good reward in long run.. If u r inveting directtly in stocks then invest in good quality stocks keeping horizon of five years at least..

2.Do not sell stocks in panic..

This is very important point.. do not sell ur long term holdings in panic.. if u think to sell ur long term holdings at these levels and planning to buy at further lower levels then i m sure that u will regret. who knows how much market will fall or the level 8555 is bottom.. so better to keep ur holdings as it is..

3. Do not copy others..

Never copy others..  never be a part of herd. just do ur owwn analysis.. keep strict ur decipline and behave accordingly..

4.Do not follow ur broker blindly..

Do not simply take trading decision becoz ur broker recommends it.. take ur trade as per ur trading plan.. keep strict sl.. in my openion better to keep away from intraday trading till volatility is high.. when implied volatilty falls below 20 then start again trading..

5. Do not take chance with penny shares.

You can not afford to take risk  with penny stocks .. alwys invest in good quality stocks ..

6.Do not loose focus.

due to sudden fluctuations u wll find some stocks at mouth watering level. but it is suggested not to get trapped in all these stocks.. better to  keep focused on ur wtchlist stocks.

7.Do not do over trading.

Never do trading for the sake of trading.. trade only when ur parameters of entry level reflects.. exit as per ur targets.

8. Do not Think  only short selling...

 Though short selling in this market will give you profit. It is not wise to do only short selling in this market. You need to make some potentially good long term investments that will give you good return in the future. on 13 march 2020 when there was lower circuit in nifty at 8555 level if some one sold at that level in the hope that it will fall further he trapped in the short selling flow.. so better to trade with neutral openion.

9. Do not Predict the end of downturn ..

 Do not try to predict the end of the downturn and decide on your trading decisions based on that. Make good investments at fundamentally strong stocks and your investment will get you good return eventually.

10. Do not make huge investments.

As there is probability that market may fall further so do not make huge investment at one time.. invest in parts.

Happy investing