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Market is simple: Market wants same from you.

Those who look stupid at first are often the ones who succeed.
You don’t have to catch the bottom, nor the peak. If you can manage to buy ‘anytime after‘ a substantial correction, you will be very rich. Over time stocks make new highs, I don’t think it should be difficult to start. What are you waiting for? Equally important is to sell when things stop making sense. No matter how much the market rallies after you sell, do not buy again.
“You don’t have to win first, you have to win last.”
Unfortunately the nature of stock markets is such that you can never predict when things get out of hand (look at point 1 above). There will be 7-10 recessions over the next 50 years. Don’t act surprised when they come!
The only way you can really prepare yourself for a stock market crash is by keeping some of your money in other asset classes.Everybody has biases. There is nothing wrong with that. I have a bias against gold so any investment other than stocks goes into safer money market products.
Warren Buffett was once asked about the best investment advice he would give to a money manager just starting out.
He said, “I’d tell him to do exactly what I did 40-odd years ago, which is to learn about every company in the United States that has publicly traded securities.”
Moderator Adam Smith protested, “But there are 27,000 public companies.”
“Well,” said Buffett, “start with the A’s.”
This without a doubt remains the best investment advice for me and I can safely say for all those who are serious about investing. Though, I agree 100 % with Adam Smith – you aren’t going to get to 27,000 companies. So where do you start? The good news is that in India, there are only about 5,000 listed companies. So I guess . . . . start with the A’s!
The above conversation took place when the world was a really strange place. News did not flow easily and information was not available as freely as it is today. In many ways, internet has changed the way people do things. Courtesy the internet, I am able to reach out to all of you.
The kind of stocks you select should depend upon 

(i) your expected return

 (ii) the risk you are willing to take (with your principal investment) to achieve that return and on 

 (iii) the amount of time for which you can part with your money.
In the year 2008, at the bottom you can see RSI(14) above 2008 you can see RSI chart has became RED and after that it fell down. Now look at the top on the candlesticks chart, by following the RSI, NIFTY50 fell from 6468 to 2351. A CRASH WHICH NO ONE CAN FORGET!
After that, same way on the RSI chart look in between the year 2014–2016, RSI chart again became RED. And after that it fell down, following this look above at the normal candlesticks chart. Market fell from 9139 to 6500! A crash!
And it is said that market repeats it's action! (Old rule). So now in the year 2018 RSI is 74 and likely to create a red mark! And once a red mark is created market will follow the rule and it will fall heavily as happened same in the past!
PS- it's my analysis and my opinion.. my intention is not to create a panic but to warn retail investors who lose money due to lack of knowledge! Act according to your appetite and understanding.
Mayur Jagtap
Investment Consultant
jagtapmayur.v@gmail.com



For regular and daily small update 

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