Hey All,
Again we observed stock market crash here in India today and this time it was even bigger with SENSEX[Sensitive Index] falling 1,636 points to close at 71,948, while the NIFTY[National Stock Exchange Fifty] fell 488 points to settle at 22,331, slipping below the 22,400 mark. There is no control whatsoever and as an individual investor we can just see our portfolio go down and down. Right now my overal loss is sitting around 20% and if I do the rough math then the total loss is close to Rs. 2 lakhs which amount to $.25K dollars. This is a massive loss, mainly caused by the ongoing conflict between Iran, Israel, and the United States, combined with escalating geopolitical tensions. So what are we supposed to do now? Well, I have a plan, and I have been executing it step by step.
Stock Market CRASHED - Booked Some Profits to Buy the DIP...
Speaking of the plan then what I am doing is booking my profits where applicable. I had NLC India Ltd stocks that was giving me around 20% profit and hence I have started to sell and from that money I am buying other stocks which are already in my portfolio and I am having loss from them. To be honest here I have been doing this type of trade for quite some time and have observed that it seems to work quite well. This is subject to the condition that one should be patient and wait for the right opportunity to arrive. As an example check my following trades today::
Here is the summary of the trade done today. At first sold my holdings in NLCINDIA to unlock capital. Then I actively reshuffled my portfolio to take advantage of lower prices. The capital recevied from selling NLCINDIA was was redeployed into other stocks like INDHOTEL [Indian Hotels Company Limited], AWL [Adani Wilmar Limited], JWL[Jupiter Wagons Limited], MOTHERSON and other stocks. The main foscus here is to accumulate on stronger opportunities during the correction and DCA as well. I am sure at one point the markets are going to bounce back and that is when I will again book some profits and redploy it for stocks that are giving me losses. Its all that simple. But lets see if this strategy is going to work or not. Or is there more market crash in coming... In a nutshell _ I would say that one should try to exit weaker position and rotate into better performing stocks. And always remember the thumnb rule in the stock market which is protect your capital first, profits will follow. Ok for now this should be it for todays post on - "Stock Market CRASHED - Booked Some Profits to Buy the DIP..." Be Alreart & Vigilant before Investing in Crypto & Stocks... Happy Investing.. Cheers
#StockMarket #Crypto #LongTermInvesting #Investment #hodl #strategy #WealthBuilding
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Best Regards Paras
PS:- None of the above is a FINANCIAL Advice. Please DYOR; Do your own research. I have a personal interest in blockchain, stocks, and cryptocurrencies and actively invest in emerging projects.