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July 28, 2007
What you should and What you should not do while Sensex Crashes ?
What you should do and What you should not do while the market crashes?
>Ok if you have answer for this question then everyone will be happy on a crashing market day , infact when we know the answer for this question then from that moment onwards the market migth not crash at all , first thing panic between investors is the one that causes the Crash or else it might be like a 100 or 200 point fall , you just panic oh my god how much i might loose becasue of this crash .
>Second thing when the market crashes i will always advice to sell the stock that are in profit and later buy the same in the down market and hold it for your portfolio.This is applicable for the stock which are in loss also until you know what type of market it would be the next day, for example on friday if the market closes like 580 points down and the market is favoured by global news then i will book loss in my counter and come in monday and based on the opening move i might buy it back , But with a Global market like this Mainly US market which is down by 200 points again , you never know how much will it go down again .
Third thing to be safe on a Crashing market like this follow these rules.
>Put your money in the market just little by little , dont be too greddy while profitting or buying and make sure its consistent.just stay " aram se " Eng (" stay cool") while the bulls and bears ride it out.
>You just dont put your money in same basket put in all sectors,company sizes (by market capitalization) and regional distribution.This way your portfolio is not hit by one thing it has to be hit by several thing in order for the portfolio to sink in red.Like for example there are some stocks which was not really hit by yesterdays market , it was still up .
>Another best advice dont go into Futres when the market is too hot , im saying this out of personal experience
Mohamed Abdulla
TKS FOR YOUR E-MAIL.YOU PLEASE WAIT,NO HURRY TO TAKE DECISION,THIS CRASHES IS TEMPORARY,NOT PERMANENT, OUR SENSEX WILL REACH 16000 BEFORE 2007.SO KEEP THIS IS MY REPLY FOR YOU.
Vikas Gupta
First of all. Donot panic out.
Secondly, if someone needs cash in short term/near future, he has to access his stoocks status. The stocks which has fallen relatively less, he might offload the first.
Thirdly, you should have started looking upon the valuations of the stocks which you missed during the Bull run & the time to start hunting for the correct entry level.
Fourthly. please deploy your funds in instalments & not in one go.I think that one should see opportunity at every fall & take advantage of that.
Dinesh
I think one should get out from useless stocks and get into better stocks which have corrected during the crash. Any crash should be seen as an opportunity to buy good stocks which have proved their worth in runups.
Shailesh
Most large crashes take about 6 weeks to 12 weeks to recover .... even when sept 11 happened with the Dow. If fundamentals are in place then over this following few weeks markets will look to mean revert.
Gopinath
Buy as much as of the A group shares with high %loss (as on Friday) to get maximum benefit on Monday /afterwards.
Umesh
Just dont panic is the keyword. Book the profits if there is any. For the stocks with less than cost price, just hold on if it is good stock. In case of penny stock just sell off at whatever price u get
Rahul
HI,
When the market crashes what to do is purchase more stock which u already have or other than that at a lower level & what not to do is don's sell u r existing stock in loss.
According to me the this is the simple way to protect our funds from market crashes.
Ashwani Sarpaul
Thanks for mail . Your topic is good.My suggestion, Dont be panic, market may crash further 100 to 299 points but it will recover 300 points before major crash.BOOK Profits, corrections may start coming by first week end August onwards.It may correct upto 1500 to 1700 points , Sensex can even touch 13800 to 13900 in AUGUST ITSELF.Collect cash to buy on dips as Indian companies are strong and you may see 18000 levels by year end.
Posted by rupya at July 28, 2007 6:52 PM