Open Share Trading Account – No Acc Opening Fee – No Commission on Mutual Funds and IPOs, No AMC Fee – Set GTT (Good Till Triggered) Orders on System and Forget – The System Will Book Profit. Click Here to Open!!!
I have written a book on Personal Finance. It will help you to know the best ways to invest in stocks, mutual funds and options. Click here to get the book.
My Course Testimonials Year Wise:
Year 2015 | Year 2015 Page 2 | Year 2015 Page 3 | Year 2015 & 2016 | Year 2016 | Year 2017 | Year 2018 | Year 2019 | Instant Reaction Testimonial | Difference Between Othe Courses And Mine | Most Emotional Testimonial | Year 2020 | Year 2021 | Year 2022 | Year 2023 & 2024
Click here to WhatsApp me to know more about my course – if you want to do my free course please fill the form below!!!
I am sure a lot of investors must be thinking they should invest now or not since Nifty has already touched 23,000 – its all-time high.
The problem is not with reaching 23k but this was too fast too soon. From 18k lelevs to 23k. This is an increase of 23.70% in 12 months as of 25-May-24.
Will this sustain the next 12 months also? I feel no. Stock markets usually give a return of 12% a year on average in the long term.
So is a fall imminent? Yes, I can’t tell exactly when that will happen but one thing I can tell for sure is that Nifty will not sustain these kinds of returns in the long term.
So what will happen now? It may fall a bit or go up a bit (the win of BJP is already factored in the markets), but if they lose hell will break. At least a 15% fall is sure.
What’s the best thing to do when the stock markets are at an all-time high?
- Book partial profit in the stocks you hold.For example, if you hold XYZ 100 stocks bought at Rs.50 now at Rs.75 then sell 40 at Rs.75 and keep the 60 stocks in your demat. This is called profit management.If after the election results the stocks you hold go further up it is ok you can book partial profits again but if it comes down you can buy it back or buy some other stock of your choice.
- DO NOT stop your SIPs (Systematic Investment Plans) in either stocks or mutual funds.
- The stock markets will keep increasing forever because some or the other stocks will go up – they will influence investors to keep buying other stocks. This cycle is never-ending. Therefore if you feel like buying more stocks, do buy but make sure you have done due diligence before buying. However, I would still suggest booking partial profits when the stock markets are at an all-time high – and letting your SIPs continue.
- Stop Derivating trading (Options and Future trading) at least till the General Election 2024 results are out and a few days have gone by. Let things settle down and then trade when INDIA VIX recedes below 17. Right now it is at 21.71.
It is expected to go up till the 4th of June 2024 – the day General Election 2024 Results will be out. Wait for a few more days – 5 trading days – then start trading. If you are an exceptional trader then trade with 50% of your normal capacity. The next 15-20 days of less profit will not make much difference to your life. However, increased volatility will be hard to manage if you trade with a higher number of lots. The psychological impact can do the damage, not your trading skills.
Lastly, All-Time-High is just a temporary phase. Stock markets are known to give returns of 12% on average over a decade. But it doesn’t work like a fixed deposit. Stock markets go up and then down. If they do not breach their All-Time-High they will never be able to generate 12% a year on average.
So the final answer to the question – Should You Stop Investing When The Stock Markets Are All-Time High? Do not stop investing. However, if you are scared book partial profits but do not stop your SIPs or the monthly investments to create wealth over the long run.
Click to Share this website with your friends on WhatsApp
COPYRIGHT INFRINGEMENT: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.
INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However, every trade depends on the trader and his level of risk-taking capability, knowledge and experience. Moreover, stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.
DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. I do not give tips or advisory services by SMS, Email, WhatsApp or any other forms of social media. I strictly adhere to the laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles on this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given on this website. I am not responsible for any investment decision you take after reading an article on this website. Click here to read the disclaimer in full.
Find 200+ testimonials of my course:
What Traders Say About This Course