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Friday
November, 8

Lesson for Millennials: Bears Try to Roadblock Nifty 20K as of now; What’s Next?

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The recent roadblock to the 20K mark is a reminder to millennials that the stock market is volatile and there will be ups and downs. It is important to stay calm and not panic sell during these times. Instead, focus on your long-term goals and continue to invest regularly.

Here are some of the lessons for millennials as Bears try to roadblock Nifty 20K journey as of now:

Rebalance your portfolio.

  • If the market downturn has caused your portfolio to become too heavily weighted towards certain sectors or stocks, you may want to rebalance your portfolio. 

Don’t panic sell.

  • It is easy to get caught up in the emotions of the moment and sell all your stocks when the market is down. 
  • However, this is often the worst time to sell all the stocks. 
  • Instead, stay calm and focus on your long-term goals. 

Consider taking some profits:

  • If you have made significant gains in your investments, you may want to consider taking some profits off the table. 
  • This will help to protect your gains and free up some cash for other purposes or reinvestment.

 Stay patient:

  • The stock market is cyclical and there will be ups and downs. 
  • It is important to stay patient and not expect to get rich quickly, 
  • Don’t put all your eggs in one basket. Spread your money across different stocks and sectors. 

Here are some key considerations for the next phase of your investment journey:

Review your investment goals.

  • Are you still on track to reach your financial goals?
  • If not, you may need to adjust your investment strategy. 

Stay invested for the long term.

  • The stock market is a long-term investment, so it’s important to stay invested even when the market is volatile. 
  • If you sell your stocks every time there’s a downturn, you’ll never give your investments time to grow.

 Reevaluate your risk tolerance.

  • Have the recent market fluctuations made you more or less risk-averse?
  • If so, you may need to adjust your asset allocation.
  • Start small. Don’t invest more than you can afford to lose.

Don’t try to time the market:

  • It’s impossible to predict when the market will go up or down, so don’t try to time your investments. 
  • Instead, focus on investing for the long term and staying invested even when the market is volatile. 
  • Instead, Do your research. Before you invest in any stock, make sure you understand the company and its prospects to time your exits and not the markets. 

Keep investing regularly.

  • Even if the market is down, it is important to keep investing regularly (but not blindly based on others’ intuition or tips)
  • This will help you to rupee-cost average your investments, which means that you will buy more shares when the prices are low and fewer shares when the prices are high.

If you choose to accept the above (Mission I-M-Possible) I mean to say learnings and considerations, then you will be ready to protect your investments and stay on track to help yourself reach your own financial goals.

Conclusion:

Sure, the Bulls (Type 1) may have missed out on celebrating the Nifty crossing 20,000 (20k) this weekend, but the finish line is still in sight.

Swing traders (type 3), who are typically more cautious, may have joined the Bears (Type 2) in the short term; trying to drag Nifty below 19400 levels (even 18600) as the index came up just short of its milestone of 20k.

However, with the Q1 result season still active and the current monthly expiry date on July 27th, and many more to come, there is still plenty of time for the bulls to persuade the swing traders to join their side.

Because somehow If the Bulls can maintain their momentum even after today’s roadblock, there is a good chance that Nifty will be able to cross the 20k mark and higher (20220++) in the next few weeks/months as compared to 18600 levels anticipated by the Bears trying to create the roadblock In the first case.

Of course, there are no guarantees in the stock market, So, if you are a new-age millennial investor, don’t give up hope just yet. The finish line is still in sight, and with a little patience, you could be celebrating the Nifty crossing 20k in no time.

J2K (Justified to know) Truism:
The stock market is a long-term game and there will be ups and downs along the way; stay focused and keep learning along that way.

Weekend Read:
1) “How Swing Traders Will Decide Trend During Q1”

http://in.investing.com/analysis/how-swing-traders-will-decide-trend-during-q1-200591684

2) “Investors’ ‘Magnum Opus’ Takes Nifty to ATH Before Q1 Results”

http://in.investing.com/analysis/investors-magnum-opus-takes-nifty-to-ath-before-q1-results-200590714

Disclaimer: For educational purposes and work in progress for developing a book series ‘Justified to Know (J2k) series” and “Stock Market for a Common Man without Jargon” (Copyright + Trademark with Jetage Matrix System (JMS)

Please share your views (Feedback / Comments / Criticism ) all are welcome.



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