Thread by @Finology_Quest

What should you NOT do in a Market fall?
- A small thread 🧵 1/4

1. Buying shares that are trading at 52 week low: Market correction can turn many investors into value pickers, but during their quest to find value stocks, they can fall for stocks that are value traps.
#zerodha

2. Taking leveraged bets: Margin investing should be avoided especially when the market is volatile because using leveraged money can cause panic even if there is a small dip in the market.
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#StockMarket #investor

3. Investors generally anchor themselves to a particular price, usually their purchase price. If the share price has dropped bcz of fundamental reasons like deteriorating B/L sheet, corporate governance issues. It is better to cut your losses and exit the stock.
(3/4)

#Share

4. Buying more to avg out: Investors try to cover their losses by buying more of the same shares at a lower price. Averaging down is beneficial only if the stock is of good quality. If the share is not fundamentally strong, averaging out may cause more losses.
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#investing