The stock market nowerdays is showing signs of voltality. Maybe it is over-heated and heading for a minor correction. Without correction nobody is going to make money. But now institutions and other big players are using special software to trigger minor voltality and dip in stock prices. It may be become increasing difficult for individual investors to make money.
So what are the options open for retail investors, depend on stock advisors. Well there are pitfalls too of trusting stock brokers, a reputed organisation like Indiabulls VP was involved in hacking the de-mat account of his company. The VP illegally traded 1 crore within a span of 45 minutes and lost out 46 lakhs. Of course he has been arrested on complaint by Chakraborthy whose account this VP had hacked. So guys be aware of the pitfall of parting your password to such crooks. For details refer to TOI Business column.
The times are going to tough so better to hold on to the stocks and offload and book profits. The momentum of the market seems to be swinging wildly like a pendulum. The investors should be prepared for a bull charge which can hurt badly like a raging one. The bull ring is always difficult to tame. The days of 50 to 100% gain is over, one should be satisfied with 20 to 25% gain. As the stock market head towards 20 K mark there is bound to be sharp correction.
SEBI has been switching portfolios of Index stocks and weightage. This is adding to prevalent voltality. There is a need to keep the Index stocks stable at least for 2 to 3 years to get a reasonable hang of the trend. Jobbers will be out of Job and will have to work as individual investors. The best bets are now only Blue chip companies.........you can count them on finger tips...............start counting ITC, SBI, HUL, NTPC, ASIAN PAINTS, MARUTI,.....................
Track the stocks closely and try to maintain record of the lowest and highest, when it is approaching the highest don t invest, better to sell and keep bank balance to buy on dips. Now it may sound all Bull to novices, and to some it may sound bearish, nobody can fantom the market. The twist and turns are unpredictable and so is the heady feeling when one makes money. If one plays and keeps track of limited portfolio one can make a decent return.........but watch out for the danger signals................
