One thing that we can never predict in the share market is the rise and fall of the market. But one thing is very clear that a stock is considered to be good only if there are proper price fluctuations. We have to also understand that the market can crash for multiple reasons and it can happen any time. There can be instances where the week would have started very well on Monday but suddenly there would be a huge crash that happens on Wednesday or Thursday unexpected. I have even seen markets recovering back on Friday itself creating a short opportunity for the traders.
When the share market is crashing, it is always the right to invest in some good stocks. But the only problem during the crash is that we will never know if the crash has ended or not. We would have seen a good crash today in the market and in the next few days if the market crashes even further, it can be a tough time for the investor right. So, it is always good to follow a nice strategy during the market crash and try to purchase wisely.
Focus on good stocks
Good stocks in the market will always have its time. When the overall points of the share market fall, there is a high possibility that the market will have a panic situation and even a very good stock will fall. That becomes the right opportunity to invest in them. There are different types of stocks, some show great fluctuation, some are slow in growth but good in the longterm and some never move. Some stocks might be a good one but there will not be any good volume of buyers or sellers. These are some of the factors one should keep in mind while exploring the stock market.
We have to keep some good stocks always on our watch list. Some stocks might grow consistently irrespective of the market situation or any good or bad news about the stock. The reason can be because the fundamentals of the stocks can be very good. It can be quite rare to get those stocks at a good price. But when the market crash happens, along with all other stocks even these stocks can have a huge fall and the price can drop. That can become the right opportunity to invest in that particular stock. If we notice it properly, even during the next crash the price of the stock would have not gone below our bought price and the threshold would have been maintained.
Observer long term best price and buy
Buying the right stock needs lots of observation. In order to define if a stock is good or bad, it is important that the stock should have a good history. In order to understand history one should observe the stock more frequently. Before investing in a particular stock, we have to be a great observer of that particular stock.
I can confidently talk about a few stocks in the Indian Share Market. If the price of a few stocks drops for some reason, I can confidently say that it would recover back in just a few days. Keen observation gives that knowledge and if we do investments based on that knowledge we can get a decent profit out of it and we will also have a clear picture as to which stock will be good to invest during a market crash.