investonline

The pandemic has changed the world forever. The social distancing has become the new normal. The GDP of world economies suffered a severe blow. The markets witnessed worst fall in percentage terms. Naturally, investors have become anxious. However, the markets have recovered smartly and touched new highs. Usually people buy low and sell high, but in the fall last year many investors could not buy when stocks were low. If everyone is told to"buy low, and sell high" why do people sell when they hear the smallest of bad news about a company? When stocks are available at fire-sale prices, everybody wants to sell. Investors often make a beeline to sell instead of buying undervalued stocks. Whenever volatility hits the markets investors panic. This is short term strategy. every single study done on the subject found that buying and holding will beat trading long-term for the common retail investor.  During 1992-93, BSE Sensex fell by 53%. India's GDP in 1992 was mere 28,820.84