#stockmarket #stocks #sharemarket
STAY AWAY from these 3 things if you’re an investor! The NIFTY keeps doing a sea-saw around the figure 20,000! And it’s crazy how it’s reaching new highs every week… if you’re like me and a long-term investor, here are 3 things you need to stay away from:
PANIC SELL!
At such market highs we all feel like booking the profits we see on our screens! We don’t want to miss out…But without these all-time highs, equity markets cannot grow and generate returns. For example, if you expect Indian equities to grow at say 12% per annum, then mathematically it means the index will roughly double, reaching 40,000 in the next 6 years, become 4X in the next 12 years, and 10X in the next 20 years!
Make sure you stick to your asset allocation and rebalance your equity allocation if it deviates more than 5% from the original allocation.
PROCRASTINATE!
When you have new money to invest, but the markets have already gone up, you’ll want to wait for the next dip, what if it never comes?! Build a rule-based framework for investing new money, and combining lump-sum and staggered investments over 3-6 months, depending on market valuations.
TAKE RISKS!
Trying to time the market is the worst mistake you can make. The key, is to resist the temptation to take excessive risks. Stick to your original asset allocation and look out for bubble market signs!
Don’t let the market stress you out. Stay on course of your investment plan and ride the waves while you focus on the long term!
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[FinCocktail, Finance, Personal Finance, Invest, Equity, Stock Market, All time high]