As Foreign institutional investors (FIIs) Net Index long position increased to 70% in comparison to 67% and equity indices hit a new high riding on global cues, Zee Business Managing Editor Anil Singhvi on Tuesday advised investors to exercise caution while trading in the stock market. He said the investors should clearly understand the difference between momentum and living on ‘Euphoria’.
The Market Guru said you should be aggressive but not stay in the realm of Euphoria while executing trade.
Elaborating on it further, he pointed out three indications of this euphoric condition that has seized stock markets.
First, when one makes a hurried trade and assumes that the price will not go down below his/her set price.
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Zee Business (@ZeeBusiness) November 10, 2020
Second, you trade in bigger volume than you usually do.
Buoyed by the new high, when you start trading in multiple indices against your routine is the third indication that you too are seized by this Euphoria. Explaining the third aspect, Zee Business Managing Editor said, for example when someone who usually trades in Nifty, all of a sudden decides to lay hands on Bank Nifty or buys three different stocks in place of one that is the third indication.
He said it is very important to stay in the market than be swayed by current levels and ultimately fall in a trap.
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He said the investors have to make sure that they do not lose early gains in small market corrections, save their investment and the gains, remain cautious of euphoria and then resort to aggressive trading.