A falling stock market is always a cause of concern for retail investors. This is because the value of their stock falls. This is especially so, if the fall happens just after buying shares.
Share prices fell on Friday after hitting a new lifetime high over the past few days. Bank stocks led the fall after rallying for many days. This may come as a bad news for investors who bought shares.
So, here’s what to do if you are in such a fix:
1) First step - Identify: The stock market works in a cycle. It goes through periodic trends of jumps and falls. Some cycles are purely sentimental – based on investor sentiment about the near future. Some cycles are based on short-term technical trends – based on short-term correction in stock prices due to profit-booking. However, it is the fundamentals that dictate the market trend in the long term. This is because, if companies grow in the future, the market is sure to rise along with it. So, if the stock market is down, the first step is to identify