Friday 15 October 2010

PANIC SELL AND US AND WHAT SHOULD WE DO WHEN THE MARKET IS IN PANIC.

I tried all the time to stop people selling their scripts when the market got a panic situation...the problem is we understand the fact but we cant control our self away from that panic.
we make panic and sell but did we try to figure that why is that panic and why should u sell in loss?  i guess no...we just go with the flow and we regret later..its not that it has happened for the first time..it happened many many times..but what we learned from our mistakes? NOTHING???... remember,

''fools learns from their mistakes but the clever one learns from other peoples mistakes.''


when u see the sell pressure is rising u just sell it but u dont buy it on the same day..but what does the big fishes does? they start sell it first just 2 make panic,,and when u starts selling ur scripts they start buying..this way u help them 2 ways.

1.u help them by netting(they sell first and when they buy they buy it later at a lower price)

2. u just help them to profit more by buying scripts at a lower price.

indeed u have noticed that the market bounce back within a short time and the prices goes back to high,and check the volume of each day people panics and sell their share..u will find a significant amount traded on that day.

isnt this very easy to understand? then why would u sell in panic and with loss?


here something u could do during a bearish trend,

1.u could buy some more slowly to minimise your  average.

2.dont sell no matter how down u see ur scripts falling.if u have a fundamental good share and if u know it will be good then stick to ur share and follow number 1.

3. if you are confident on the share u have and if u see it going down,do some things like..dont visit ur trading house..dont visit the online groups/pages related to share market..if u visit them it will give u more stress and eventually lead u to sell ur scripts..when the market is down big fishes agents or them selves are more active to spread panics.

4.finally as i always say...patience patience and patience...that is the only KEY to success in this business..dont give up ur hopes..we dont live for a day..think of tomorrow..because TOMORROW is always different from yesterday.

GOOD LUCK.

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