Volatility is not always a bad thing, as it can sometimes provide entry points from which investors can take advantage.
โ As the price fluctuates, and eventually hits low, it provides the opportunity to buy quality stocks in a sound company and then wait for cumulative growth down the road.
๐๐ผ๐ฟ ๐ฒ๐ ๐ฎ๐บ๐ฝ๐น๐ฒ, say you researched & found a quality stock.
The stock was at Rs 100 a short time before & now currently is at Rs 50.
Buying stocks in this way lowers your average cost per share, which in turn improves your portfolioโs performance when the stock rebounds.
1๏ธโฃ ๐๐ฒ ๐ฐ๐น๐ฒ๐ฎ๐ฟ
Clarity allows us to focus on our goals and ignore market inconsistencies.
What we are investing for and how long we will remain invested is important.
2๏ธโฃ ๐๐ฒ๐๐ฒ๐น๐ผ๐ฝ ๐ฎ๐ป ๐ฎ๐ฝ๐ฝ๐ฟ๐ผ๐ฎ๐ฐ๐ต ๐๐ผ ๐ฑ๐ฒ๐ฎ๐น ๐๐ถ๐๐ต ๐ฒ๐บ๐ผ๐๐ถ๐ผ๐ป๐
When volatility rises, emotions tend to get the better of us.
We must deal with ourselves and devise an effective way of managing our expectations.
3๏ธโฃ๐๐ป๐ผ๐ ๐๐ต๐ฎ๐ ๐๐ผ๐ ๐๐ฎ๐ป๐
Surprisingly, volatility often gives us what we want.
When it gives us what we want, we must develop a mindset to quickly grab the opportunity.
Now how do I find quality stocks to invest in a volatile market?
โก๏ธWhat is NSE IFSC Exchange? Is it an index of NSE?
IFSC stands for International Financial Services Centre. It is a fully owned subsidiary company of NSE & has received approval from the market regulator to establish an International Exchange in Gujarat's GIFT city.
โก๏ธWhat all things can trade in NSE IFSC?
Trading is permitted in:
โข Equity shares of companies incorporated outside of India
โข Depositary receipt
โข Debt securities
โข Currency
โข Index
โข Interest rate
โข Non-agriculture commodity derivatives.
โข 3+ crores Investors
โข 4000+ Companies
โข 100+ Sectors
โข 200+ Ratios
and the list goes on...
How to find good ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐ using suitable ๐ฟ๐ฎ๐๐ถ๐ผ๐ of growing ๐๐ฒ๐ฐ๐๐ผ๐ฟ for ๐ณ๐ฟ๐ฒ๐ฒ
?
Let's find out.โคต๏ธ
Imagine yourself in a library. ๐
Between sweet smell of books & N number of wooden shelves, you want your favourite book.
Now, will you browse the whole library one by one for that book or just visit the particular section the book belongs to?
95% will choose the second option.
โข It's smarter.
โข Time saver.
Well, then why don't we do the same while picking stocks?
Everyone will tell you this during Market Crash ๐
โขDonโt Panic
โขHave Patience
โขAvoid Hurry Selling
โขBuy the dip
โขRebalance when the worst is over
โขAlways have a backup plan
โข...etc...etc...etc
But only a few share some practicals. Let's do it today.
A thread๐งต
It is next to impossible to predict a fall. But when it happens we are left with two options:
โTo panic sell good stocks.
โ๏ธStay calm and look at the crash as an opportunity to invest in more quality stocks.
Now you would ask that everything is in RED. How to differentiate quality stocks from fundamentally weak stocks?
We have an answer.
Let's look at 5 important ways to identify quality stocks.โคต๏ธ