Time to bring Long-Term Investing Back! - Part 3

 


All investors today must be very boggled by the fact that the stock markets are down. Some would have an issue looking at losses in their portfolio and would be worried when the markets will be back to higher levels. Some would be booking losses in the anticipation that markets will correct more. So for them it is better to book losses than waiting for the market. And finally, some will look at their portfolio in losses and start adding companies which they seem to be confident in.

Overall, Nifty has corrected 6.22% from its ATH of 26277 (as of 22.10.2024). Stocks also have corrected in the same period. This is an expected Market Correction. This definitely brings back the opportunity of Long-Term Investing in the Equity Markets. 

What should you be doing exactly during this period of Correction in the Stock Markets?

1.       Increase your SIPs in Mutual Funds right now if you can. This is the correct time to invest more in the markets.

2.       Don’t panic when looking at your Equity Portfolios. You should think about why you invested in that stock particularly. (In most cases, if your investment thesis is fundamental based, you shouldn’t panic at all).

3.       Start booking profits in stocks so that you can build up cash for buying stocks at a later stage. (You can always re-enter the stocks that you sold as markets are in a correction mode).

4.       Start averaging stocks in which you are confident that the company is doing well fundamentally. (Use the Equity Checklist to understand the company better).

5.       Get out of the those stocks which you have bought purely on the basis of tips from a friend/trader & have no idea of fundamental story of the stock or it is a penny stock

For your reference, I have discussed about a few great fundamental stocks in my previous blogs which you can refer to in the Current Affairs Blog or My Journey Blog.

Happy Investing!!!

Disclaimer: None of Blogs are Buy Recommendations.


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