So the Indian stock market has fallen.
The exact market levels may vary but the result is always the same. Lost opportunities for profits, disappointment, and of course financial losses.
Whenever the stock market crashes, everyone hears about it...and everyone talks about it.
In fact, everyone loves to talk about it. Even those with no money invested in the market will have an opinion about the crash.
The media dutifully does its part. Headlines speak of Rs 'X' lakh crore in wealth, wiped out in a day.
Every fall in the stock market also teaches old lessons to many investors and traders. The reasons why the stock market falls is different every time. The stocks that fall the most are also different. But the reasons why people lose money is always the same.
The reasons for the losses are usually found in their enthusiasm during the preceding up move. The market fall exposes their over investment during the up phase.
People lose money in a market fall not due to the fall itself but rather due to making bad investments and overextending their trading accounts when the market was going up.
And when the market tide turns downwards, as Warren Buffett said, they get caught naked.
When times are good, investors and traders believe their stock picking skills are responsible for their profits as opposed to a rising market tide lifting all boats.
Thus, they become overconfident and make investments in fundamentally poor stocks. They also tend to over allocate funds to these stocks. Some even borrow on margin. This exposes them to the dangers of a market decline. It's only a matter of time before they get hurt.
Thus, we can see that the reasons why people lose money during stock market declines are predictable and can be avoided.
Here's a list of articles and videos explaining why the Indian share market may be falling. This is a great starting point for anyone who is looking to stay updated with the current developments of Indian share market.
May 29, 2023
Is the stock market in danger of crashing after Germany's announcement of recession.
Mar 29, 2023
Can buying the stock today create the super investors of tomorrow?
Mar 20, 2023
Indian share markets recover some losses but still end in red. The BSE Sensex fell 361 points while the Nifty shed 97 points.
Mar 16, 2023
Indian share markets are trading on a negative note with the Sensex down by 219 points, while the Nifty is trading lower by 64 points.
Mar 15, 2023
Turning the crisis into an opportunity could hand you some of the biggest multibaggers.
Mar 14, 2023
Indian share markets are trading on a negative note with the Sensex down by 150 points, while the Nifty is trading lower by 57 points.
Mar 9, 2023
Indian share markets are trading on a negative note with the Sensex down by 259 points, while the Nifty is trading lower by 75 points.
Feb 28, 2023
Indian share markets end the day on a negative note. The BSE Sensex fell 326 points while the Nifty fell 88 points.
Feb 27, 2023
Indian share markets are trading on a negative note with the Sensex down by 421 points, while the Nifty is trading lower by 137 points.
Feb 22, 2023
This is how to avoid going horribly wrong when picking the next HDFC Bank and Titan.
May 3, 2023
The risk is far bigger than just volatility in quarterly earnings and valuations.
Mar 22, 2023
The actual risk posed by the notional treasury losses in the banks' books is evident in this chart published by the FDIC.
Mar 17, 2023
My view on the crash in bank stocks globally.
Mar 15, 2023
Indian share markets end deep in the red ahead of weekly expiry. The Sensex fell 344 points while the Nifty ended lower by 69 points.
Mar 14, 2023
Indian share markets ended on a negative note. The Sensex fell 338 points while the Nifty ended 111 points lower.
Mar 10, 2023
Indian share markets end deep in the red. The Sensex fell 671 points while the Nifty ended lower by 177 points.
Mar 2, 2023
Indian share markets are trading on a negative note with the Sensex down by 340 points, while the Nifty is trading lower by 97 points.
Feb 27, 2023
Indian share markets end the day on a negative note. The BSE Sensex fell 176 points while the Nifty fell 73 points.
Feb 24, 2023
Indian share markets end the day on a negative note. The BSE Sensex fell 142 points while the Nifty fell 45 points.
Feb 20, 2023
Indian share markets ended on a negative note. The Sensex fell 311 points while the Nifty ended 99 points lower.