An investor can be a little reckless in a rising market, but when the tide turns, the primary focus should remain on sailing through to prepare for the next bull run.
When investors witness a bear phase in the market they are left with two options, either stay invested and wait for the market to turnaround or incur a loss and exit.
But when a market turns bearish, what investors should do is stop focusing on capital appreciation and start looking at capital protection. This is a fundamental shift that an investor should make from a bull market to a bear market. An investor can be a little brave or even reckless in a rising market, but when the tide turns, the primary focus should remain on sailing through to prepare for the next bull run.
In the third episode of Stock Market Classroom, Udayan Mukherjee, Consulting Editor of CNBC TV18 reveals how to tame a bear and ride a bull.
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