It is time to buy as there is blood on market.
The last couple of weeks were really tough in the Indian equity markets though Indian markets were continually in a downtrend for the last 4 months but in past 2 weeks, many stocks breached the mark of 52-week low and started trading at a new low. The downtrend in the market was so severe that a few of my friends complained that their one-year of SIP (Systematic investment plan) was also showing losses. My "small" portfolio was also not an exception and I experienced a significant dip in my portfolio too.
Is it time to worry?
Frankly speaking, I am not sure but what echoes in my mind is one of the famous sayings by Nathan Rothschild as:
"Buy when there's blood in the streets, even if the blood is your own."
I can not go on buying in the market as I do not have a "free flow" of money to put my money every day in the market to buy every new dip but yes it gives me confidence that if I pick my choices right then I should not worry too much and hold what I have instead of selling and quit.
The best scenario in this case is if we are not able to buy more dips and each dip aggregates to more losses then stop looking at the portfolio at all. We don't need to take action on the market every day and observing it for future trades and doing nothing today is a perfectly valid plan.
My next course of action.
I have already invested money and cannot strain more but I am closely observing the price movement and if the market remains in this downtrend, I have already got my list to check what I can pick that will bring most value to my investment in the coming days. One thing is sure that I am not going to discard my current picks as there is nothing wrong in them as market went down as a whole so they also went down.
I am now in a "wait and watch" situation and wondering what is your current approach.