- Big tension — quality smallcaps crash from ATH: Route Mobile is down 78%, Happiest Minds 79%, Clean Science 68%, Birlasoft 66%, IndiaMART 64%, Praj Industries 62%, Alkyl Amines 60% and many others 30-60%+. Even good businesses can deliver poor returns when bought at high valuations. Review investments every 3 months, focusing on both fundamentals and technicals.
- As per market veteran, trading is the only job where overworking can make you poorer. Successful trading is less about predicting the future and more about discipline, risk management and staying focused on a strategy.
- Be alert investors: Many well-known stocks have closed below their previous 52-week lows, highlighting continued weakness across sectors. Avoid emotional attachment to favourite stocks and regularly ask whether the investment would still be worth buying today if it were not already owned.
- Brent crude above $80 is a major negative for the Indian economy. Drought risk from El Niño, heavy IPOs, OFS and QIPs could further drain cash-market liquidity, while elevated global food prices add pressure. Avoid overtrading, excessive leverage and margin funding till Diwali. As per market grapevine, without relief on LTCG/STT, SIP flows could weaken and investors may shift towards FDs and bonds.
- Trading Rules: Be patient, trade your own ideas, avoid impulsive decisions and limit risk per position. Define entry and exit levels, cut losses quickly, avoid averaging losers and remain flexible when the market proves you wrong. Prices often move before fundamentals, so listen to the market and stay disciplined.
- Power of “I don’t know”: Accepting uncertainty can be more valuable than overconfidence. Future returns, interest rates, gold prices and asset yields are unknown, but goals, required corpus, asset allocation and savings rate can be planned. Know what you can control and accept what you cannot.
