Blog meant for 7 March 2018 Wednesday
Dear friends,
Massive fall for Nifty today and closed 110 points lower. The Asian markets were positive today but inspite of that Nifty opened positive in the morning and closed very weak at the end of the day. Currently, European and US stock markets are quite flat.
Since it is a bear market. These kind of falls are quite common and expected.
Nifty is in Don’t Buy zone.
The indications for individual stocks for short term are –
DON’T BUY – HINDALCO, ASIAN PAINT, TITAN, MARUTI, M&M, SBI, YES BANK, AXIS BANK, ITC, HDFC BANK, HDFC, VEDANTA, Reliance Industries
WAIT TO SELL – Infosys
SELL – TCS,
There are no fresh buy indications for short term as of now.
Continue to invest on a monthly basis for long term. If you have some lumpsum amount to invest, you can divide the money in 4-5 instalments and invest over the next 4-5 months.
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Question –
What are some of the mistakes people do in long term investing?
Answer –
The following are some of the common mistakes which investors do when investing for long term –
1. Lack of patience – They start with the idea of investing for 10-15 years minimum but end up getting impatient and sell in 4-5 years, thereby making limited profits or sometimes even making a loss if they sell when the markets are at a low.
2. Irregular investing – Investors are very excited to invest when markets are continuously rising but during market falls or downturns, they stop their monthly investments. In fact, when price of good companies have fallen, we should be more excited to buy since we are getting prices at a discount.
3. Postpone investing – Many youngsters do not understand the power of compounding and long term investing and start investing much later in life. Instead of starting at the age of 25, they unnecessarily postpone till the age of 35 or 40 years.
4. Selecting wrong companies – investing in wrong companies and holding for long term is of no use since the selection of companies is the most important part of long term investing. Investing in a good company and holding for 10 years plus will give good returns. However, investing in sub-standard and unknown companies and holding for any number of years may not result in any profit.
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