How to survive the bear market ????

I have made more losses in the bear market............... Whatever i short its not working ..... when in go for long also its not working..........

is there is any way to survive ??????????????????

Most investors in their initial days asks the famous question - "What is the right time to invest (or) When can i start investing in markets?". A simple answer to this question is "Anytime is good time for investing provided you have a defined time frame of your investment".

The question should be rephrased as "How long should i be invested to attain my financial goals and How much should invest periodically(SIP) over a longer period of time". Investment over a longer period of time is always fruitful and facts supplement it. Sensex has come along all the way from 100 to 15,000. If you had invested 10,000 rs in infosys ipo in early nineties, you are crorepathi by now.

Follow the simple steps while making/tracking your investment.

1. Don't Waste time

The earlier you make investments, the better are your returns. The compounding rate of return increases with the number of years you are invested. Eg. 10,000 invested for 3 years at 15% return is worth 15000 whereas the same sum invested for 10 years at 15% return is worth 40,000. So do not time the markets to buy at lower levels. It is very difficult to find the bottom of the market.

2. When do you need money?

Decide on when you need the money down the line. For anything less than 5 years, do not go for stocks or equity mutual funds. Equity should be considered only for a longer period of greater than 5 years. For short to medium term investment , go for debt instruments

3. When to sell?

After you had made your investment, you should decide on when to cash out to meet your financial goals. There are two scenarios where in you can redeem your investments.

1. When your financial goals are met.
2. When the investment in stocks/mutual funds become overvalued.

4. Don listen to rumours

Do not redeem your investment going by the rumours in television and stock market of a correction or a crash. Take your decision on your own.

5. Consistent Review

The job is not done just by investing. One should always keep monitoring his/her investments in a regular basis and should take a decision based on the review.Do not churn the portfolio too often.

The best way is to stay out; even if you are cash rich;

yes quit trading! Buy and hold! Look for companies that are selling in the market place less then they are worth on the books. Case in point the following companies:

1) Coachmen Industries (COA)

2)Monanco Coach (MNC)

3) Miller Industries (MLR)

It is all about asset values!

From the import of your question we expect that you are at present indulging in the future and options segment of the stock market. You may consider stopping this at the earliest, as it seems you do not know how to transact these financial instruments and are probably simply looking for ways to leverage the finances you may have at your disposal.

If you must transact in the stock market for reasons best known to youself, we would suggest that you start transacting only in the cash-and-carry segment of the stock market. Of course, you would have to ensure that you have a fair margin of safety available to yourself as and when you do transact.

Ideally you may consider doing your own research and analysis; and not depend on tips from unreliable sources. You may also consider reading a few books on investment analysis and portfolio management. You could search at www.amazon.com for a suitable selection of relevant books in this regard.

Sincerely,

Akash
http://www.narachinvestment.com
http://narachinvestment.blogspot.com
http://feedproxy.google.com/narachinvestment/uaXA
http://www.narachphilosophy.com
http://narachphilosophy.blogspot.com
http://www.narach.com
http://finance.narach.com

Hard to predict right now, it's like that Chinese curse " may you live in interesting times "

There is one common line quoted by any one who is related to stock market and that is "TREND is FRIEND". It seems you are following it but not able to judge what to trade in which direction.May be in the bear market you are shorting those stocks which are strong means which are in positive zone thinking that they may fall because others are already in RED.In the bear market the stocks which are not in red will be the first ones to shoot up when market rebounces.and the case is vise versa in the bull market.You might buy stocks which are not advanced and these stocks tend to fall sharply if the market slips.

This is one best technique to observe the market and stock specific action apart from trding INDEX....Hope you will benfit...

i think the basic concept in trading is emotional control and next to follow some basic rules. Just plan a trade and trade a plan. with high degree of discipline, it is easy to tell but difficult to follow.
follow some technical analysis software, example in metastock follow Ps- ad.moving average show where to short and where to go long.

happy trading.

Its a tough old time, only the strongest will survive

Go long unless you don`t have enough time. Don`t short unless you know what you`re doing.

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