Transcription
A correction is happening in the stock market. There is heavy selling pressure. So, as a trader and an investor, what am I doing in this market situation? What is my personal strategy? We will discuss that. First, we will discuss what I am doing as a trader. And what should be done as an investor, we will also discuss that.
Two to three months ago, I uploaded a video. I think I uploaded a video in the month of November. In that, I discussed that the success rate that was coming in swing trading earlier was not coming now. Weakness was visible on the screen. So, based on that, I had an expectation of a market correction. But, as you know, nobody knows exactly when the market will correct. So, based on that expectation, I reduced my positions. I reduced my positions in the month of November. And whatever positions I had in swing trading, I cut them in December, January, and February. I also booked losses on some trades. Net net, I cut those positions.
So, currently, you see, I do not have any active positions in swing trading. Last week also, I took some trades for swing trading. I took them with the expectation of a reversal. But those stocks also did not move. So, this week, I cut those positions. So, what should we do going forward? If you immediately go into swing trading, your stop loss is likely to be hit. Because the market is under downside pressure. So, if you try to take contra trades, there is a chance of your stop loss being hit. So, we should wait for a reversal. And as soon as there is stability in the geopolitical issues that are ongoing, and the market also gives an indication of bottom formation, a reversal will happen. At that time, we can actively go into swing trading. We can go. And at that time, we will also capture good momentum. Because the market is already coming at a discount. So, as soon as there is a reversal, the reversal will also be fast. So, at that time, we will also capture momentum. So, we should wait for that opportunity. And we should not go aggressively immediately. As soon as there is an indication of reversal and geopolitical stability comes, then we can actively go into swing trading again. So, I am also waiting for that.
So, currently, because profit is not being generated in swing trading, what am I doing now? I am doing day trading a bit more actively. I am doing intraday trading. And, you see, for intraday trading, we need momentum. And currently, there is momentum and volatility in the market accordingly. Because if you look at Nifty on a daily basis, it is moving 100-400 points, so there is momentum. So, here, by trading a bit more actively and doing day trading, I am trying to generate some profit. But, you see, this is not for everyone. If you cannot trade actively, if you cannot stay on the screen, then you should avoid day trading. You should then wait for swing trading. As soon as the opportunity comes, you should wait for it. So, I am currently doing a bit of day trading. And in my other segment, crypto trading, I am actively doing it. I am actively doing day trading. But for swing trading, we are currently in a wait-and-watch mode.
And what should we do for investing? So, you see, in 2020 also, the market corrected. It corrected around 35% at the index level. After that, for four years, the market was in a good bull run. It was in a positive run. After that, for the last 2 years, the market has been a bit sideways. And now it is coming for a correction. So, this correction should be taken as an opportunity. And if you are an investor, then you should analyze which sectors can perform well in the next bull run. So, in that sector, which is the best stock, which stock is coming at a discount. It is coming at your buying price. So, there, you should look for an entry opportunity. And as the market corrects further, you will get a discount at that price accordingly. And there, you will also get an opportunity. So, you should take this as an opportunity for investing. And gradually, you should invest. And if you are a mutual fund investor, an SIP investor, then you should continue your SIP. And if the market corrects further, then you can also increase your SIP amount, or you can invest a lump sum.
So, you see, I have discussed both sides. I have discussed both investing and trading. Hope you found the video informative. If you found it informative, then like the video, share it. Thank you for watching. See you in the next video. Thank you.