The bull climbs up the stairs of the building

Monday, 21 January 2008

.........while the bear jumps out of the window.

Today most of the equity investor might be feeling like this..

Today the Sensex lost 1408 points which is biggest ever absolute fall for the index at some point it had lost more than 2200 , Nifty , midcap and small cap indices lost 8-12%..
In NSE there were 9 advances while declines were more than 1200 ..
We may not see a day when most of the A group scrips falling 25-30% ..
I feel instead of struggling in finding fundamental following market etc etc, if you go out for a shopping in a day like this you cann't be wrong.

Most of the investors had lost the money they have made in last 6 months in this 6 days it self.. take the case of parsvnath developer , it has taken 6 months to go from 300 levels to 600 and in 6 sessions it has came down to below 300 again..It has fallen almost 30% in one day..



After seeing a day like this , can any body stay invested for longterm . This day might come when you need the money most..

If you think the same situation in another context , say you have bought a put option by paying some premium your loss considerably come down and even you can make money more quickly .

So my advice to any one wants to be in market they should know how to make money in both direction either up or down..

RK

Posted by Ravikanth at 11:10 0 comments