You do not need to be a brilliant to earn money from the market. You just have to be more intelligent than the rest of the people, but this understanding should be not for a few days or months but for a long time. This is to say that of famous investor Charlie Manger. This is also completely correct in the current volatility of the market. Seeing the way the market is broken in the recent past, retail investors are afraid that the market may fall further. But the sensible investor is the one who identifies the correct investment opportunity in the market. Because in every big fall, you do shopping, it does not happen in your hand.
There is no doubt that the stock market is not able to create its level at the moment. No experts are talking openly on when the market is brakingout. But it is so clear that some good shares have been broken in this decline and there is a chance to invest in those stocks.
Market experts are clearly saying that this is not for market trading. Investors who cannot take risks should stay away from the market. Investors who want to invest for long term should keep investing a little. With this, there will be money in your hand on every decline and you will be able to make average or you can invest money in any other share.
When will the decline in largecap shares stop?
Largecap stocks have already fallen a major decline and small and midcap and breakdown. So if you are scared now, then a big opportunity to make money will be missed. But one thing is necessary to clear here not to plan to make quick money and put money in long -term shares. Choose shares that have strong fundamentals.
If you trading, then you have more chances of losing. This is to say Vijay L. Bhambwani. Bhambwani is the CEO of Prophemthry Trading firm BSPL India Dotcom. Bhambwani says that in 2025 F&O traders are facing a lot of difficulties. Because in this decline it is important to take care of insial margin and large lot size in front of them.
Behavior pattern of retail investors wrong?
Looking at the behavior of retail investors, when the trade is going bad, most traders keep their positions. But this is not their choice but compulsion. Because the retail trader sets its trade with a small profit. But when it is about the trade trade, it remains in the trade with large losses. Due to which its capital is blocked. Due to increasing lot size, retail investors implicate their capital in a trade that does not get any return.
How did investors survive bad trading?
Bhambwani says that professional traders use downtrading to deal with this problem. This downtrading is exactly like a trick of a salesman. If the customer is not buying the top brand because its price is high, then make it a cheap product. Now the customer is buying cheap brand instead of expensive brands, it is called downtradeing.
If you look at the data of the last few months, then it was clear that the trend of traders is now increasing in stock options instead of stock futures. This is also a kind of down trading. Because traders are unable to repay the insignificant margin of stock futures, they are buying call options.
It has to pay small and fixed costs for long. It seems right to do so at first sight. But this is not correct.
Bhambwani says that the retail trader is putting himself in a lot of trouble. This is because the options are called ‘Westing Asset’. An option that pays the premium starts decreasing with the passage of time, even if the price of security remains stable.
Therefore, retail investors should choose good shares while staying away from trading at the moment.
Where and when to invest money?
Right now the new tariff policy of Trump is showing an impact on the market but it is a short term. The Nifty has fallen more than 10% from its record high of 26,216. The midcap 150 index has fallen by about 12 per cent from its all-time high.
In such a situation, the loss of those investors who bought these shares at an expensive price. And instead of choosing good shares, they will be afraid that the market does not break in the coming days.
Are Indian markets better right now?
As far as the market trend is concerned, India is safe from Global Economic Slodown. However, high valuation, sluggish economic growth and weak earnings growth have definitely affected the market’s sentiments. Despite all this, market experts have full confidence in the arrival growth of Indian companies. Some companies have also performed well and investors should be ready to invest in any decline.