Market moves like a dance; stay in rhythm.

Ever since the Fed Rate cut comes into place, the Investor's is keen to invest in Indian stock market. Many investors are expecting a quick turnaround, and wanted to double their money quickly. I often come across this question:
"Can I double my money in a month through stock market trading?"

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In my opinion, one month might not be enough to double the invested money. But if they are taking too many blind risks in a hurry to double their money, then one month is definitely enough to lose it all.

Want to Be a Happy Investor?

People jumps into the stock market expecting to be rich. Thanks to #youtube videos and other social media tips, many channels comes up promising to double investor money. However in veil of this, there could be some kind of scams that unfolds. The recent case in Assam is one such example were the fraudster easily sweeps Investor money by promissing good return.

To avoid such cases, the first and foremost thing one should do is to Stop Chasing Hype! The recent Bajaj Housing Finance IPO in India was good example where to get the IPO benefit many investor blindly invest in other Bajaj shares to get shareholder benefit. Even post IPO many were quick to grab small chunks, expecting the stocks to rally.

Many investor even regret missing out on random stocks they see skyrocketing on social media. But remember, rising prices alone should not be the sole reason to buy, and falling prices should not push us to sell. Most of the time, chasing hype only brings regret sooner or later. This makes it important to focus on the real criteria of investment i.e Business, Fundamentals, and Future Growth.

Buy in Dip, Sell in High!

A smart investors alwsys make their research before putting their money into a stocks. The other importsnt question that I often comes across is
When is the best time to buy?

The answer is very simple, it is pretty difficult to know the best time because timing the market is hard. But yes, one can choose to accumulate during challenging phases, like:

• When a good stock falls without reason.
• When a good stock drops despite strong results.
• During market panic, when good stocks fall due to panic selling.
• After a heavy correction, with growth triggers ahead.

An investor needs to be very careful, while picking stocks. Rather than being influenced, try to do own market study. Here are few of the criteria that I check in :

• Avoid stocks that have risen significantly.
• Avoid stocks that are very expensive and have no growth to support their valuation.
• Avoid FOMO stocks, especially microcap stocks.
• Avoid stocks with poor business fundamentals that might be rising only due to investor sentiment.

Here’s what can be a good option:

• Focus on stocks with strong fundamentals.
• Focus on stocks that are currently beaten down by temporary challenges, like those in the chemicals sector.
• Focus on lower valuation stocks that could show growth post-rate cut and might see PE re-rating.

Stock market investment is risky. A person should get into the market only when he understand the market rhythm. Make sure to know all the pros and cons before playing along market sentiments.

Peace!!

Namaste @steemflow

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