We’re now at the beginning of a mega-bull run with Nifty surpassing 19,000.
Reiterating a few things will help you ride the tide & save yourself when tide goes away:
1. In Stock Market, remember, we invest in businesses not stocks. The stronger the business, the stronger the returns would be.
2. Make sure you always have some cash in portfolio.
3. FOMO is going to be a big thing. As the rally catches the pace, expect the sorts of those who play Dream11 to enter markets for quick money on that hot stock. It’d be far better to stay away from that hot stock then buying it for quick returns.
4. Penny stocks are like junk food. Seems exciting to grab a bite but not good for health. Stay from penny stocks & those who peddle it.
5. Understanding the business & earnings cycles will help you make sustainable returns rather than follow the trending or breakout stocks.
6. When stocks rise, it’s always enticing to buy stocks on leverage. A wrong trade can wipe you out. Stay away from leverage no matter how attractive the opportunity sounds.
7. Don’t quit your jobs to be a full/part time trader. This is nowhere happening now but I’ve started to receive these queries. Once it happens on a large scale that will be the top!
Again, I reiterate, this is not the end. We’re just at the ‘beginning’ of a mega-bull run. Though it’s always better to remember the old lessons. The euphoria is still missing. A lot is yet to come.
When the strongest of the last bear turns bullish, that’s the time the bull market gets over. Right now, I see many bears lurking around.
Hold on to your stocks closer to your heart.
