I lost 40% in a day
On June 4, during the counting of votes of the Indian General Elections, the stock market crashed and I lost almost 40% of the unrealized gains of last one year in my stock portfolio.
But I did nothing.
9 days later, my unrealized stock gains have doubled and are more than what they were 10 days ago.
If I had panicked and sold the falling stocks on that day, I would have lost a good amount of money.
The lesson is that stock investing is driven mostly by human psychology.
Most people lose money in the stock market when they lose their calm and start panicking.
A market crash or a stock dip is a bad time to sell. Unless a company is getting bankrupt, the stock will eventually go up in time.
If you have bought a stock for a long term perspective, do not get worried by any short term fluctuations. No need to even check its value daily. Just sit back and relax.
This may seem counter productive, but “doing nothing” is the best strategy when your shares are going down due to a market crash.
What are your views on this?