Wednesday, March 19, 2008

Stock Market Bloom turning to Doom?

Aren’t we all a worried a lot these days? I mean those who dabble in the Stock Markets both as Investors and/or Traders. I use the word dabble purposefully here because most of the general public who deal in stocks just do that – they just pounce in and panic out. Pounce in when there is bull dash and panic out when there is bear swipe – Or at least that is what they think – it is bull now and bear then – and so on.

True – The market all over the world are taking a real beating – what started as a sub prime crisis in the US is probably leading that country into recession and when US goes into recession all other countries who deal with it go into trouble. And which country doesn’t deal with the US?

Every day Analysts are churning out their opinion of how bad the situation is and how worse it will go – Many of them advice us to stay low and wait for the bottom out at the same time they assert nobody knows where the market bottom lies. It is also true nobody knows for sure about the bottom but the same time nobody knows abut the top either.

Recession, Depression, Recovery and Boom are economic cycles occurring all over the world throughout the course of history of mankind! Do you think there was no recession during the periods of the Ceasars, Khans, Arthurs, Ashokas, Akbars, Cholas? Calamites can occur – man-made or natural – which can lead to economic destruction. But remember unlike other animals HOMO SAPIENS have the ability to come out of any calamity.

So coming back to dabbling in the market – what I want to say do not dabble – If you have bought the stocks of a solid company – if your portfolio inspire of the company being good is negative – if AND IF that portfolio’s remaining balance is not immediately required by you the STAY INVESTD – do not worry about the negative give it a year or two it will bounce back. But if you are trader play the game correctly – there is a marker mantra called STOP LOSS – stick to it.

AND LEAVE THE RECESSION TO BEN BERNANKE – HE KNOWS HOW TO HANDLE MACRO ECONOMICS. As Dhirendrakumar of Valuereasearch says you take care of micro level economics meaning your meager capital. You manager yours well. DO NOT PACNIC.

Disclaimer: The above writ-up is not meant of market makers – AND market makers please will you leave the market alone for a while – why don’t you go on a holiday!!!

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