There are 2 types of corrections after an upward rally into stock market:
1. Price corrections: Where stock prices fall down after exceptional rises.
2. Time corrections: When the stock prices don’t move either up or down. But stay within a range. You don’t lose money here, though time is lost (wasted) as some refer it in world of finance as opportunity loss if the money were invested somewhere else during this dull time frame & could have generated some returns.
Time after time, there are time corrections in market.
Since past 1 month after briefly hitting 20,000 mark (Nifty 19991 high to be precise), we’re stuck in time correction.
As an investor it’s kind of a dull phase for many when stocks aren’t moving. Which is quite natural in markets. But for traders it’s frustrating because they can’t catch any moves because of the sideways market.
During Time Corrections, you don’t have much to do. Since stocks aren’t down you can’t even buy much.
It is at this moment, some investor’s faith is getting tested by the market.
The best thing to do in this phase is to keep a tab on markets, read different materials, free up additional time to think & contemplate on your life & investment decisions (do course corrections if needed) & continue with your research.
Historically, both time & price corrections don’t last long usually & markets rebound sooner or later.
