Tricks when market crash

Pramod Thomas — Fri, 21 May 2010 10:09:57 +0000

When market crashes what happens to the common man. If you think that share market is not for common man this question is not for you. Now in India more and more common people are attracted towards stock market, particularly young men. Can they afford a big crash in stock market, the answer is a big no. Ordinary people think that market crash is a foul play by some fat pockets. They also think that FIIs caused the sudden crash. What ever be the reason, the fact is that common man looses his money. He can’t compensate it in the near future. When you loose your hard earned money it is indeed a difficult situation to put up with.
So now you are facing this situation. During the end of 2008 it was global recession. The son of American sub prime crisis. The residue of the same rests below the ashes now. Markets started showing improvement. Then came the Greece crisis. In simple terms one can term Greece crisis as ‘debt overflowed’. First aid had been given. Then European union and IMF came forward to give proper treatment. All is over and the patient is in ward now.
Not only Greece but countries like Portugal, Spain, Italy, Ireland also facing same situation. Treatment only given to Greece. What will be others in their pocket is still awaiting. Some said Greece crisis was the beginning of another crisis. Some argued it wasn’t. What will be the future of stock markets across globe is the million dollar question now. What will be the fate of common investor?
Greece crisis and similar developments have eaten a major part of investor money. Stock market is a place where our policy should be hope. (now we have got proof for this too because market bounced back over coming recession!). So hope is the best medicine during turbulent times. Is there any other tricks. I am not optimistic but I want to furnish some tricks. This can be called ‘tricks when market crash’. Rule first don’t be panic which will again lead to lose. Wait and watch (but before investing you should remember that in share market there is always risk).
Don’t put all your money in one basket. It’s the golden rule of investment because when you do this the risk is even bigger. Don’t apply others rule when you take investment decisions, create your own rules. Market crash almost all the time but there are other investment avenues also which gain when market tumble. For example gold, during this market crash. Keep an eye on that and act properly.
If you have strong belief on your stocks don’t sell it because when market goes up you can reap the fruits!. Staying away for a short duration is not a bad decision at all.

Pramod Thomas » europe

Tricks when market crash