Sunday, August 7, 2011

Waiting for tomorrow

About 27 months ago, Election results announced on Saturday gave a victory to the UPA coaltion. This was market friendly news, therefore the markets were expected to gap much higher on Monday, which they did - higher than assumed.

Now, Saturday morning IST, the S&P ratings cut was announced with all markets closed for the weekend. The first reactions will be at monday morning in Asia when the markets open in Japan, around 6.30 AM IST.

For Investors: remember, you are in for the long term. Short term volatility must be accepted as part of investing. Do not panic. If you have spare cash, then go for something like an SIP - systematic investment plan in which you invest a fixed percentage when markets go down by say 10%, or in which you invest a fixed percentage every month.

For Traders: increased volatility can result in bad decisions. try not to trade for a day or two. If you have positions, then you have to manage them. Do not feel depressed if the positions turn unfavorable. This is part of trading.

2 comments:

amarjeet said...

respected sir,
you are great i like only respected sudarshan sukhani&respected c.k narayan in technical analysts.another analyst i think like me.i dont like fundamental analysts.they are every time wrong.

Balu said...

Sir, does that mean a down circuit tomorrow??? Because it was actually upper circuit after election result!!!!!