The market crashed due to the election results, if you want to make money, do these 5 things

There is an English saying ‘Money saved is money earned’ which means if you want to earn money first learn to save money. Markets are in turmoil amid the election results and if you want to make money during this period, you should focus on saving money first. Besides, a falling market always gives investors a good entry opportunity. So there are some things that you can do to save money and earn good money. Obviously, money won’t be made overnight here, but with some patience you can earn good money from it. Learn the five things you should focus on before the market recovers.

1. Do not pause/pause SIP by mistake

Don’t make the mistake of pausing or canceling your SIP in a falling market. Because this is the right time when you can make the best use of your SIP. Don’t miss the opportunity to buy units at low NAV. Because you will definitely benefit from it in the long run. It is very difficult to time the market, so by continuing to SIP in a falling market, you will not only let your savings for your goals get affected, but also increase your chances of savings and returns more than before. The market will bounce back sooner or later, so continuing with SIP is a wise decision.

2. Invest together in mutual funds

It is a very good habit to save some money so as not to miss an opportunity. A falling market is the perfect time to take advantage of such an opportunity. In such a situation, it is better that you invest a lumpsum amount in your mutual fund holdings. It doesn’t matter whether you have a small cap fund or a mid cap fund or an index fund. A lumpsum investment in a falling market will benefit you in the long run. This will not only give you an opportunity to buy a unit at a cheaper price but will also give you better returns when the market improves.

3. Increase your holdings in good stocks

If you have kept some stocks in your portfolio for long-term holding, this is the right time when you can increase your investment in these stocks considering their PE. The opportunity to enter should not be missed if the prices of the purchased companies fall in the future. Apart from this if you want to buy new then after doing fundamental analysis you can also invest in some new companies. To be on the safe side, you can choose some good large cap or mid cap companies.

4. Don’t rush out of good companies

When there is an atmosphere of fear in the market it becomes difficult to ignore your basic instincts. In such a situation, many investors exit even good stocks that they can minimize losses in this way. But if you have bought these stocks with thorough research and conviction, you should be confident in your decision and not be afraid of the emotional ups and downs of the market. Your holding in the company does not convert into a loss until the company itself starts incurring losses. By selling due to fluctuations due to temporary reasons, you will book a loss only for yourself.

5. Novice investors should stay away from trading

The number of discount brokers has grown exponentially over the past few years. In such a situation, people from every department are opening demat accounts and starting trading. But most of them are those who neither understand technical analysis nor do fundamental analysis before investing. Those buying stocks based on tips alone should keep in mind that this is not the right time for intraday trading. SEBI is also conveying the fact to the investors through stock brokers that the possibility of loss in trading is highest. If you have learned new trading then this is not the right time to try things practically. For intra-day trading, wait for the market to become stable and in an up trend. So that you don’t lose your savings.

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