Market Investments Tips! #Part 1
The market has always been a magnet to uncountable investors whose main aim is always to become the next successful investor? 🧐
No, never the aim for most of the investors is the smell of big fat money earned from the investment into the share market, mutual funds, debt market,…. and probably the list is too long.
So if you have started the investment journey recently or it's been some time this article will help you get a few things clear and also provide you with some of my personal tips along with it are my few mistakes which I don’t want to repeat again as well as help you aware of them well in advance so that you all don’t perform them. 😎
- Don’t sell in #crash: I have always seen the investors selling in situations like panic and rush. So always take care that you are not one of those and always try to have some patience during that time. Wait for the right time to come as a single crash doesn’t mean that things are over and the market won’t get up again just the matter is you need to wait and have some faith. Most of the investors made this mistake in the recent market crash around March-April (time-specific to India).
Also, I know that speaking is very easy but following it is rather a tough task but if you master it then I bet you can surely achieve your goals irrespective of the situation.
My mistake: I had bought the 1 MRF share at Rs. 62,500 but soon the prices kept going down during the so-called 2020 crash and almost went down to Rs. 51,900 at the end of March and continued to play in the range of Rs. 52,000 to Rs. 61,000 for the next 2 months (April-May). As the situation was kind of panic, stress, and also vehicles movements didn’t seem to catch the normal track any time soon. So in 1 month I finally sold my MRF share and booked a net loss of Rs. 2,500.
My learnings: I surely knew that this is a stock which will earn me a lot but my faith was broken seeing the sudden sell-off and the uncontrollable disaster due to the pandemic, all seemed to last long so deciding to sell-off seemed fair but now as I look back I missed some huge gains so always keep this thing in mind never sell in the crash. Many times the environment is created in such a way that selling seems right but also think out of the box and the main thing is to have patience.
2. Always have some spare money to average out: I have seen that investors normally are very bullist over a particular sector or stock that they never keep some spare money if things don’t go as per the plan so this is a horrible practice and in worst or bad times led to harsh troubles. Thus always have some money in spare which will let you perform some magic of “Averaging Out”.
My mistake: Again I would like to use the same mistake ( buying MRF at Rs. 62,500 and selling at Rs. 60,000 ) because if I had some spare cash with me I might have averaged out my investment in it because as you can see that there were many chances offered my the market to buy it and also for such long time almost 2 months when it played between Rs. 52,000 to Rs. 61,000.
My learning: Averaging out is a great disaster savior if used rightly and appropriately. I might have averaged out the price to almost Rs. 56,000 to Rs. 58,000 if I had that spare cash with me which might have led me to at least a few bucks profits rather than a loss. So even if you skip “Tip 1” then also “Tip 2” is there to save you in bad times “have some spare money to average out”.
Stay tuned and stay connected to get more insights and tips like this in the upcoming parts of “Market Investment Tips”. Also, feel free to connect with me on Linkedin: https://www.linkedin.com/in/umang-thakkar-90a4a5164/ and Email: umangthakkar005@gmail.com
Note: The shares which I have talked about in this article are as per the Indian Market.
