Do you want to know how to tackle the market when it massively falls?
Well, this is the question that arises in everyone’s mind when they see a decline in the price of something they have bought or held.
The current price for Nifty is around 23130 from its low of 22857.65 on 28 January 2025.
It nearly recovered 300 points from below its low.
After making the low, the Sensex and the Nifty are recovering.
One of the most substantial reasons the market was falling was the selling pressure from foreign portfolio investors, which was heightened by the tension of the pre-budget pressure.
In three points, I will explain how to tackle the market when it falls. And believe me, it is a panacea in trading and selling situations.
The three points to handle market pressure are
1. Patience
One of the most important things that we all should be looking for is to have patience in ourselves. Because there will be times when the market will fall, and the price will be reduced to an extent.
Remember, it is just one of the days in the market that has reactions like that.
Success in trading is not far from us if we successfully manage these.
2. Analyse
what we do is when the market is falling and when we see a reduction in the price of our holding stocks, we panic, and in that panic situation, we forget to analyze the stocks we have.
That is why we miss out on a better chance of investing in other stocks. So, to utilize the falling stocks, we need to analyze them, and if we get the chance to get into them, we should sell them to get the most out of them.
3. Execution
See, it is very typical that when the stock falls, we get hampered and panicked and forget to do the things we learned in a trading journey.
If we become afraid of taking a trade in the falling market, we are losing a very good chance of getting the selling benefit by selling the stocks that are likely to fall. By doing so, we can make a good profit.
So, analysis and execution are also very important for staying in the market long.
Last thought on market falling
Don’t be afraid or panic because it is how the market reacts from the beginning when it has been listed worldwide.
Execution of mind is critical when the market is falling when we see everything in red.
It is disheartening to see that whatever we have learned in a trading journey is not fructifying.
Simple things seem to be very hard. We all have learned in a trading session that it doesn’t matter from where we have learned, but we all know that when stocks are falling, we need to do three things to improve our situation, and they are seeing, analyzing, and executing.
