(Higher volatility is the new normal in this market . The Indian markets as expected was deeply in red before the RBI announcement .
However the positive surprise from RBI boosted up the sentiments and the market moved up with confidence . Along with the other Asian markets Indian markets may also continue to recover till Friday .
Friday we have the official PMI coming from China , any further slowing can again change market sentiments and consequently the market direction.
We have written this in one of your previous posts :
One of my close relatives is a 'trader' in equity market . He purchases good stocks , then sells them off as they go up by 15 - 20 % and purchases other stocks. I think its a good strategy . However the day the market corrects 20 % he freezes into inaction. He becomes a long term investor . So you see the problem .
As disciplined investors / traders we have to understand the difference. Going forward we will have two separate sections for investors and traders. For Investors we will have multibagger ideas which will be reviewed from time to time .
However for traders they need to monitor their positions very closely based on new news flows , volume data , investors sentiments , volatility levels and specific stock based information. We plan to start a section for technical analysis . However day trading are not for the faint hearted and on a bad day one can lose a lot . What is your attitude towards losses ? Do looses puts you in a state of inaction and denial ? Do you keep averaging in a falling market ? Like my relative do you become a long term investor from trader when the market falls ?
Will you like to share your experience with us . Ask me anything and I will revert .