Revisited,for those who already read my earlier post on the same nagging question.For the ones who are new here and have the patience,please read it here.It is strange that i have had to resort to bringing the same post again,and belelive me its not because that i have run out of any other ideas.The reason is that things have become so dynamic that what holds good now may not even hold good tommorow.
I have always been a supporter of being invested in Stock Markets for long term(2-3 years),but came this financial doom and my portfolio has been swept clean in no time.So,it did made me think.
“Wouldn it be better if i had booked some of my profits and then kept some cash in handy instead of beating the “long term” propoganda”
Well,owe it to the recent economic turmoil “long term” is no more as lucrative as it used to be.Also,so many stocks that were considered mid-caps have been de valued.It actually now makes sense to buy penny stocks too.
My buddy Manrag,commented on the same and i thought it better to put up in a post to make it more visible.
Here’s what he had to say:
Gone are the times when people used to wait for a fall to buythe stocks…..now its diametrically opposite….people know that valuations can’t be much better then they would even have dared to dream….but its FEAR which has taken the place of GREED…..the two factors which rule the markets at differnt times.
Warren buffet aptly says “……Don’t try to time the markets”….but this has been proved wrong…..Returns have become negative for those who invested in US in 2000’s..A few days i read a quote from another famous investor whose name i am not able to recollect he said “” IN THE LONG TERM,,,, WE ALL ARE DEAD”…. WELL SAID… of course all those who entered stock markets off late are all ruing that why did not they sell…including me….. So, at these times the strategy should be to pick few momentum stocks …..buy them and sell them on a rise….thats the best way to make some money in these volatile gimes when markets would be range bound and would lap any bad news with greater appetite than good news…(if there would be any)…..i am not saying don’t accumulate..but keep boloking profits also…so that we should not be caught wrong footed at wrong time……
Well,i couldn agree more.With these testing times that we are in,it is always handy to be sitting on cash.But,does that mean we let it rot.Certainly not,there should always be a phased buying as an when the market looks oversold.An oversold market always involves certain amount of buying and the gains can be good.But,then greed needs to be subsided and we should book our profits,becasue the markets have nothing to sustain these gains for a longer timeframe.
A casual observation would reveal that a 3-4 day heavy selling bout in Sensex makes the market totally oversold.And then one fine day,the markets shoot up over 400 points.That is the time the profits need to be booked.
“I still curse myself for not buying Nagarjuna Fertlizers the other day when it was trading at 17 rs,and i was too lazy to buy it.The next thing i know,it went up to 21 rs within 3 hours of trading.Now,for a small cap this is a huge gain”
Anywas,there is no point crying over spilt milk.The need of the hour is to get practical and let wit take over greed and emotions.
Hope this post helps atleast somebody safegaurd their money better.Please feel free to comment
Till then Happy and Cautious Investing!!
1 thought on “Is This The Right Time To Invest In The Stock Market?REVISITED..”
I THINK AFTER THIS FRIDAY THIS QUESTION HAS BECOME OBSOLETE…MARKETS ARE EXPECTED FALL AGAIN ON MONDAY ……ON BACK OF FALLING US MARKETS…..MANY BLUE CHIPS ARE AT ALL TIME LOWS….WHAT BETTER TIME TO BUY THEN NOW….SOME OF MY PICKS WOULD BE uNITECH,INSPITE OF WAHT PEOPLE SAY ABOUT REALTY AND ITS DEFAULT IN LOAN PAYMENT…BUT IF ONE IS GETTING UNITECH AT 30 THEN ONE SHOULD BUY ATLEAST HALF A DOXEN…HUNDRED….
SUZLON….JP…GMR….MERCATOR.. AVOID PETROLEM AS FAR AS POSSIBLE AS DEMAND OF CRUEDE WILL LAG BEHIND THE SUPPLY INSPITE OF OPEC CUTTING PRODUCTION…… ONE CAN BUY A PSU IN METNALS…SAIL BECAUSE OF ITS WEIGHT AND DIVIDEND PAYING STOCKS…
THESE ARE MY PICKS….IF I WOULD BUY I WOULD BUY THEM…
I THINK AFTER THIS FRIDAY THIS QUESTION HAS BECOME OBSOLETE…MARKETS ARE EXPECTED FALL AGAIN ON MONDAY ……ON BACK OF FALLING US MARKETS…..MANY BLUE CHIPS ARE AT ALL TIME LOWS….WHAT BETTER TIME TO BUY THEN NOW….SOME OF MY PICKS WOULD BE uNITECH,INSPITE OF WAHT PEOPLE SAY ABOUT REALTY AND ITS DEFAULT IN LOAN PAYMENT…BUT IF ONE IS GETTING UNITECH AT 30 THEN ONE SHOULD BUY ATLEAST HALF A DOXEN…HUNDRED….
SUZLON….JP…GMR….MERCATOR..
AVOID PETROLEM AS FAR AS POSSIBLE AS DEMAND OF CRUEDE WILL LAG BEHIND THE SUPPLY INSPITE OF OPEC CUTTING PRODUCTION……
ONE CAN BUY A PSU IN METNALS…SAIL BECAUSE OF ITS WEIGHT AND DIVIDEND PAYING STOCKS…
THESE ARE MY PICKS….IF I WOULD BUY I WOULD BUY THEM…