Thursday, August 9, 2018

How difficult it is to make money in the Stock Market....and only reverse psychology can make you money....

No one could have made money in these market because by January all were egoistic and all thought they are Warren buffet.....Rakesh jhunjhunwala.....so in the pursuit of more profits they forgot that one day will come they will have to sit on the bench and just watch market throwing lifetime opportunity to buy at very good correction prices ....but because their portfolios were massacred they enjoy sitting on the bench and eating lollipops.....😃😃

When the market goes up all the idiots also make money.....in stock market it is never ever about how much money is been made.....it is always about Risk Reward ratio and probability.....how have you safe guard your investment by buying at very low prices and when valuations are cheap....

I rather make less money than be sorry about losing all my money..... first principle of investment....

But my finding says that making money in the stock market is a Anticipation Game...and on News basis...More the bad news which really scare the hell out of you and makes you feel scared and run to sell immediately that is the time more the stock market will go up because the earnings in future has to up and they will eventually catch up....and the moment the Anticipation of earnings is fulfilled then from here onwards the markets will go down for sure because the markets cannot keep on going up and also the earnings...so some day the earnings again has to come back to more realistic mean average and that make take time...sometimes even years...like in the case of Reliance Industries...More the uncertainty and fear the markets will go up and up...more the news are coming as per you expectations and even if the earnings are achieved and now going way above its mean average it means that the bull rally is coming to its logical end...Get out of the markets...but in the above explanation time in which the trend happens is not gauranteed and no one knows......you have to sit or get out of your investment as per above psychology and let time play its own role to benefit your investments...
Few examples like Depression....Recession in 2008/9....Brexit... Greece Portugal bankruptcy few years back....few Wars....Trade war.... Geopolitical tensions....USA.... Russia....North Korea....Home Politics....Scams....monetary policies....inflation...bad company results and fundamental.....all happened and because of it many uncertainties were born and created but still the stock market went up....yes when the news are bad then only the stock market will go up because it discounts that in the future good days will come back and the average long term trajectory growth will again be surpassed once the good news flows start coming....so these future growth is discounted for many years in advance assuming that one day the growth will follow and it will come for sure....but no one knows the time period....tha t is something the investor has to live with.....

Note: other aspects are also important like fundamentals of the companies...buying at very low discounted prices etc...but i am not discussing that for now....

No comments:

Post a Comment