Saturday, August 11, 2007


I have been monitoring,tracking,tracing the stock markets and most importantly trading stocks for about 18 months now. But never did i felt so scary!!

Almost everything went right till july 2007.They kept oscillating but there were no tremors.They were shaky but every downfall was followed with a surge sooner rather than later.Though they were not highly consistent, they were moderately predictable.

Till date i heard various reasons which lead to the bloodbath in stocks.Be it bad corporate results or be it high interest rates,be it high inflation rate or be it bad monsoon season,be it change in our government or the foreign nation,be it economic crisis or be it political crisis.....the reason could be anything...practically anything... they have bounced back after a while.

But this time the scenario looks entirely different & the reason for this blood-bath is also a different one. This time it is SUB-PRIME MELTDOWN. Each time the stock markets have crashed they went down more than 4% each. The origin of this SUB-PRIME MELTDOWN is U.S. But the ASIAN markets are taking a deep DIP than the US or EUROPEAN markets!!! That is what stock markets are all about....the hit might be at one place but the pain will be at some other place!!! Not that NON-ASIAN markets have taken a beating but they have experienced relatively less pain than us.
To know more about this SUB-PRIME SAGA refer to the following links.

Each time the markets crash,one would have at least some idea that this might last for this many days.... but this time there is no such clue of what-so-ever!! I have witnessed only one such massive fall last season when SENSEX came down from 14500 HIGHS to 11000 LOWS in mid MAY to JUNE 2006. During this time SENSEX has recorded the biggest crash in its history.On 18-05-2006 it lost some 820 odd points!! & the second biggest fall(of 645 points) was soon after the 60th independence day(16.08.2007)!!! Great way to celebrate the INDEPENDENCE DAY!!

I used to hate SATURDAYS & SUNDAYS coz the markets will be shut-down these two days.But now I started liking them!!(I luv my money....!!!). I used to eagerly wait for MONDAY for the markets to open...but now i started to wait for SAT & SUN hoping at least on these two days some GOOD NEWS comes out & i can start off the week in GREEN.

Trading becomes a nightmare under these conditions.Good time to invest if u have money.Even a shorter to medium term investors could gain a handsome amount. But be wise while choosing ur stocks!! Of course no one is a master of choosing right stocks at the right time but still....with a bit of luck on ur side u can make merry(provided u have got enough patience to hold-on).


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