Tag: MarketSmith India

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Learning Article : Still the No. 1 Rule for Stock Market Investors: Always Cut Your Losses Short

Currently, the market is in a Downtrend, as Nifty is trading near its six-month low. All the sectoral indices are trading below their 50-DMA, indicating broad-based weakness. The losses were higher in Nifty Midcap and Smallcap stocks, as they are down 30% and 46% from their all-time highs. In such a scenario, it is advised to trim positions and stay in cash rather than making huge losses. The importance of taking small losses is emphasized in this article. Continue reading “Learning Article : Still the No. 1 Rule for Stock Market Investors: Always Cut Your Losses Short”

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Learning Article : Bull and Bear Markets and How to Tackle Them ?

We are familiar with basic terminologies such as the bull market, bear market, and correction. In simple terms, a “bull market” is when the market moves higher and a “bear market” is when the market moves lower. However, one needs to understand that a new follow-through day and short-term uptrend do not necessarily signal a bull market. Similarly, short-term downtrend does not necessarily indicate a new bear market. Continue reading “Learning Article : Bull and Bear Markets and How to Tackle Them ?”