INSUBCONTINENT EXCLUSIVE:
By Vijay KediaTiming is not important in
stockmarket, if you are a long-term investor
your entry or exit.
On the other hand, in a 50-over one-day match, timing and sustainability both are important factors
So, you need to do a blending of the two here.
In a T20 match, the most modern version, timing is most important; you have to score on every
Irrespective of how long you sustain on the pitch, right timing is the key to success here.
So what do we learn from this If you are a
short-term investor or trader, you need to worry about your timing, because the duration of your business is very important.
Both
timingas
well as sustainability are important in medium-term investing, while in long-term investing, sustainability matters most.
This is how I look
at the stock market from a cricket match perspective.
We often hear a lot about
market bottom and top
in the stock market, you should ask yourself why you are here
What are you playing If you are a long-term investor, then you should not even bother about timing.
What is
timing Why
we want to time the
market Maybe because we want to buy at the bottom and sell at the top
Frankly speaking, it does not happen
Because, we are neither
God, nor a liar
Suppose somebody somehow manages to buy at the lowest price
Chances are, that somebody will also exit early
It happens so often that you exit an investment before it matures
Whenever there is a big fall, let the prices
stabilise and then buy
When the price
stabilises and there are indications that the market has bottomed out, that is when you should start buying
Because, you are going to go the distance with it, in which case chances of losing money would be very less
If someone has managed to buy at the bottom, it would be either by fluke or some indication you made for yourself
So, I will still call it a fluke, simply because you cannot repeat that performance every time.
Sometimes so happens that you buy a stock
You are always in doubt how deep the fall will be
So, as soon as there is a U-shaped rise, you will exit the stock with 10-20
per cent kind of gain
Because, you are in doubt that the market has not made the bottom yet
Then you wait to enter the market again when the next bottom comes, which does not actually happen
But you still remain in the game of timing
For long-term investors, timing the market is a futile exercise
It is better to buy 10-20
per cent above the bottom after various indicators confirm that the market has made a bottom, and then stay
invested in it for the long term.
