Posted By: Admin
As human beings we are taught you must always make a judgement or find rationale for a certain happenings. So you are always using your intellect to judge some one or a situation or an event.. or if the event or action is already happened we are trying to rationalize. If historically the sensex has corrected a bit after a quick run up of say 4000 points, we rationalize that the same would repeat every single time. Coupled with this is our human tendency for arriving at MEAN. Many investors in the stock market believe that what goes UP has to come down and what goes DOWN has to come up.. in real life things don’t always work that way.. hence you have lots of people making wrong judgement calls on the market.
So what’s the answer to the above question, we would say equity is a long term game, and equity investor must be prepared to face some short term downsides upto 20-25 % even of his investment.. while the long term trend continues to be very positive. If you can’t be at 80% of your investment for 3 years.. don’t invest in equity..if you can then you deserve the riches that it brings.
Reasons why the long term looks positive.
To make money in Equity Markets :
So don’t JUDGE the market levels.. just think long term and stay focused on growing your equity corpus in the long term.