mutualfunds

 

15 Feb 2008
The financial markets generally are unpredictable. So that one has to have different scenarios.. The idea that you can actually predict what's going to happen contradicts my way of looking at the market.
George Soros


What exactly to do when market turns against you? Should we sell everything? However, we are very sorry to say that this idea is not accepted. One should use other alternatives when market starts against you. Follow the given steps, which will help to protect your hard, earned money.
If market pulls back then make a decision that at what price you will buy the. Notify that what was the price of market in last few months. In addition, try to observe that why the stock goes up without any kind of pause. It may be due for a balk. Decide the reason and price for buying stock. Do not chase stocks.
You possibly will have a stock, which is profitable. Your purpose may not be to sell the stock soon. However, you may be acquainted that know that the particular stock may have gone very quickly. Buy a put on the position. It is considered as the safeguard for your original investment. If the stock falls, the puts should climb in value. In addition, if you are right, and take a profit in the put, you may have enough cash from the put sale to buy more shares of that stock at a good price, now that it has dropped.

In the high-risk market, buy partly of stocks what you would usually buy. You want to tramp calmly in markets when the risk is high. You‘re involuntarily keeping more cash than usual on the sideline, which is smart decision in a risky market.

Do not invest in an individual stock. Exchange-traded funds are a great way to do this. If you feel robustly that a current theme will work, but are unsure about the market, this may be your ticket.
When stocks start to fall, do not think to sell the stock. Nevertheless, remember, stocks do not just go in one direction. What makes it an interesting market is that stocks go up and down.
Amount in Rs. Crores
 
Nature
Gross

 Pur.

Gross Sale
Net
Debt
103.60
0.00
103.6
Equity
3440.20
3555.30
-115.1
By MFs as on Feb 12, 2008 Amount in Rs. Crores
Nature
Gross Pur.
Gross Sale
Net
Debt
1144.00
475.70
668.3
Equity
720.80
819.20
-98.4
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