Weekly Market Recap
As if I have been following my investing and trading model with utmost respect and dedication, so as, finally the market has rewarded me (my clients) significantly this week after a prolonged wait. As I had been short on market, especially in financials that have tumbled unprecedented sharply this week. Although, I had been giving a warning signs for last many weeks or so in my blogs, but I have been writing emphatically, to be alert, especially in my last four blogs.
I also admitted that despite giving warning sign by me the market was holding on to higher levels, but I also said sometimes it require endless patience and sincere efforts to stick to your investing or trading model to get the fruitful results. Even, few of my sincere blog reader appreciated me yesterday and I express my gratitude to them.
In the unusually long week gone by, the benchmark SENSEX plunged 1877 points, or 4.51% to close at 39735, and NIFTY lost whopping 586 points, or 4.79%
Lessons to be Learnt
In this blog, first time I am skipping myself from the current outlook portion as I have written a lot in past few blogs. Moreover, market need some time to settle down. So, I thought let me share my experience and acquired knowledge to my sincere readers. Though, list is quite long but I whittle down the few vital points.
- Create your own trading and investing model and follow it with utmost sincerity no matters what others are saying. Insulate yourself from the thoughts, opinions and chatter of others, especially the so-called “experts and market pundits”. Trust yourself.
- Analyzing the stock market by observing its movements is the key premise of technical analysis and one has to adhere to his entire career. The stocks market has its own language all its own, keep learning through your entire life.
- Don’t jump in and out of the trade or market day after day or frequently. Nothing can be harder than this.
- Discipline and patience require for successful trade. In the long run, patience counts more than any other quality except knowledge. Always remember, serious money can only be made with a paramount of patience. Hence, very few people succeed because they lack patience. Trading and investing are a game for the long run, and are sometimes boring.
- Do not trade to avoid losses, trade to win. Losses are inevitable. They must be regarded as inevitable expenses of doing business.
- Don’t allow a rushed, spur-of-the moment change-of-mind to outweigh your original, well-contemplated and research decision to buy or sell.
- In market, what goes up comes down, but what goes down does not necessarily go back up in your life span.
- My analysis of charts and technical indicators take precedence over all other analytical market methods. I always preferred to analyze the stocks, not the company. The two are not the same, especially in a bear market.
- Even a single trade has a potential to make or break your fortune irrespective of how small or big your pocket is, so always have a strong faith in your model and have a solid risk management.
- Most Importantly, you have to feel the market and its movements. Most people cannot see it but it is out there. Most people don’t know it’s out there, but it is.
I continue to strive for that perfect trade each and every time. This is my philosophy in trading and investing. I hope the above insights would be quite useful for you.
Feedback, comments, suggestion or questions are welcome at below the comment section or at [email protected].
Always stick to your model…!; Be a Savvy Investor..!!
Pankaj