As per the Definition of a BEAR MARKET, the ASI at present is hovering around the 20% fall from the peaks of last year. Hence the ASI entered the Bear Market only from the 3rd of March 2016.
At any rate the Market is faltering for many a month now. Therefore it will be useful to jot down the many reasons as to why this Market is faltering.
Fear Psychosis built for other peoples Sins
Fear is the No. 1 issue for any market to fall. I can remember with my little bit of Auctioning TEA,Rubber and Copra in the Sri Lankan Auctions that Fear of not knowing what will happen hits the prices. But even in those Auctions the smart Executives of the Biggest Export Companies keep on buying and stocking up their warehouses. When it comes to the Stock Markets all around the world, FEAR is crippling investors and traders alike.
RULE TO PROFIT FROM FEAR IS WHEN EVERY BODY INSIDE AND OUTSIDE OF THE STOCK MARKET, TALK NEGATIVE ABOUT THE MARKET. THAT IS THE BEST TIME TO BUY.
Isn't this happening now?
Doubt
Doubt is the next big thing. This is the best buddy of FEAR. Once you have feared, you keep doubting of this would happen and that would happen. When every one you know do this, your fear increases.
The biggest factors that challenges the fear and doubt at present is not only LOCAL, but it is GLOBAL too. Terror, Lower Growth Economies, Lower Commodity Prices, Political instability, Weak Politicians lacking professionalism, Senior Employees of some of the important places carrying out negative agendas for unexplainable reasons.
Another crazy phenomena I noticed is INACTION and NO ACTION. I mean having a lack of action and not taking action is something that is so frequently visible nowadays.
But the important thing is this. In the Stock Market we Buy and Sell Shares of Real Companies, where real people work every day, selling real products and services, making real money. Some real Companies make losses and some make real profits. Many Real Companies give real dividends.
We are in a Real Stock Market and those who understand the reality is winning, and they will always win, because they see the reality..
Making money in the Stock Market is not easy, but not hard only with increased education and understanding.......
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