When Market Is Bearish

admin/ August 21, 2017

For those investors who are taking big losses !!
Real learning is always through hard way. There is no short cut to it. Tough times teach so much for life which good times can never do. Those who are loosing money in the market should contemplate on their mistakes. Buying shitty stocks without any knowledge and then praying for them to go up is not investment. Buying a stock today and selling it in few days if it goes up is again not investment. If anything, it is gambling. In bull markets, everybody makes money even by gambling on stocks, thinking that they are investing. Only when the dark side of the market shows itself, people learn that there is a difference between investing and gambling.
These declines are part of the game and once you decide to enter the market, you become part of the complete game. Try to learn and improve rather than cursing and blaming the market.
Easier said than done. Many of you must be thinking about who am I to comment on markets. Well, I started learning after the market crash of 2007. I lost all my worth in the market back then as most of it was invested in garbage stocks. I thought I was investing while I was actually gambling. I made millions from stocks like ANL, DSL and PASL even back then but when markets fell, I lost all of it as there was no quality, no portfolio, no diversification and no investment principles at work. Net result was negative. After loosing a very significant amount, I realized that I had been fooling myself and gambling all along while thinking that I was investing. I did not know anything about most of the companies. I used to trade on excessive leverage. In the end, brokers won and I lost. The incident, although broke me financially, made me realize my mistakes. After that I started to learn the art of investment which continues till date. Although, I still have to go a long way, I can see the mistakes made by naive and beginner investors and their hopes of getting rich overnight. I have been there myself and understand every bit of the thinking of new entrants in the markets as I was once at their place myself.
Trading for most of the people in the market is an addiction and a way for the brokers to make a lot of money. It is addictive to look at the stock ticker and get a HIGH when markets move in the direction which we anticipate. Short term in market is like drugs. Nothing better than to see your stocks going up in a short time. Long term investing is boring and time consuming. Just like weight loss. If you want it permanently, you need to exercise and have long term diet changes. In investing, you need to adhere to investment principles and have a long term perspective. Otherwise, markets will take your money and kick you out.
The decision is Yours !!!!

Disclaimer: The article is taken from Riz Khan’s FB.