Everyone knows the truth of the market. If it goes 3 steps forward then it also comes two steps back. To date, this is the story of the stock market. Last year we saw a decline in the market and along with that, we saw a boom. We made a vlog before last year’s market fall. Coronavirus Vs Indian Economy. And exactly 10 days after that, the market starts falling. If you look at some industry carefully, then you can also predict the market. If you look at some fundamental indicators carefully, then you can also predict the market. And you can make money on both sides of the market increases or falls. Today we will discuss 3 such points which will give us a chance to earn money even if the market falls.
1. Opposite direction Industry
When the market grows, all the stocks will increase. In the same way, when the market goes in down, all share prices fall. But if you wait for a few days, then there are some industries which go into the Opposite direction of the market.
It also happens when the market falls, there are some companies that fall less. And vis a vis.
So, let’s know that 3 industry, which work against the market. The three industries are Pharma, IT, and FMCG. These are premium industries. Yes, if you had taken part in the market crisis of 2020, then you will remember it. It was those industries in the market that despite the fall of the market, there was a lot of momentum in those shares. Whatever the situation of the economy, their products and services keep running. Due to the fall of the market, people invest in these 3 industries by withdrawing money from all the industries. So, this time, remember when the market falls, invest in the company of these industries, and take full advantage of the decline of the market.
2. Currency and Commodities
To work in the equity market, you have to know about commodities and currency. Commodities for raw materials and currency for imports and exports.
those are very useful in business. You can see the movement in the currency and commodities before and during any disturbance in the market. There are some commodities that seem to grow with or before the market.
Commodity
You can take copper on the basis of an example. This commodity is used in industrial, and infrastructure is also used in white goods (AC, Refrigerator, etc.). The economy begins to use it. before the bull in the stock market, you can see an edge in this. Many investors and traders consider this a fundamental indicator. Similarly, an increase in gold indicates a slowdown in the market. Due to the slowdown in the economy, investors always invest their money in gold to secure their investment. The price of gold increases due to this. In the fall of the market, you can take advantage of the commodities by selling copper in commodities and buying gold. During the market crash, you can invest in it and make a lot of profit.
Currency
The currency market also remains very volatile, if there is a stir visible in the stock market. Whenever the Indian market fall, Rupees has seen weaker and the American Dollar has seen stronger. We know this, if our economy will remain strong then our currency will also remain stronger. So, at the time of decline in our market, we can take advantage by purchasing dollars. This was the story of our market. What to do when the global market is falling, and how to make money on those days? Like Gold, the global investor considers the Japanese Yen to be very safe when the global economy is going down. When the global market goes down, this investor likes to buy Japanese yen. This is not the best asset that can be investable during the global market crash, but also it is a very good indicator to predict future market crashes.
3. Buying undervalue shares
All the stock market wealth creators have said one thing. The best time to invest in the stock market is when the market is bad. But it is not that easy.
. Yes, everyone knows you should buy the stock when the market is going through bad situations. Sorry, but it’s not that easy and simple. Yes, there are some reasons which will stop you to buy at that time or situation.
Falling prices
When the market falls, there is no price called low, even when the stock is down by 30 to 40 percent when you buy it. After that, you see that stock is the fastest falling stock in your portfolio. Then you think you bought it at the wrong time, and it can go even more. And you can get a chance to buy more cheaply from it. This is how you make a big mistake in the stock market world. You sell that stock.
Holding a stock for big profit
Everybody knows that, If the share of the good company is kept for the long term, then definitely profit can be made from it. But who would stop people from doing the same? Nobody, but the people’s Emotion, forces them to take the wrong destination. An investor’s trading mindset, which forces them to sell the stock for little profit. They think they will get more opportunities to buy below and sell them above. It only happens for Seeing the decline in the market, they teach themselves one thing, rather there is low profit but there is no loss. They do not hold that stock for the long term for this reason. Others who regularly monitor the share price. They see that the top is where to share Price goes and comes back again and again. So, they believe in the assumption that the share price is high, and the share is not able to cross that resistance, and by selling that stock, they move towards a new opportunity.
Above I have shared how you can make money from the stock market in the time of the market crash and during a market crash. I hope you like the blog, please do share this blog and share your valuable comment too. Happy investing.
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