Monday Morning Market Musing - Fear and Greed

Good morning to all my readers. It is Monday Morning and time to put on thinking cap. There has been lot of inflows in the last few months and with this the bulls were creating new records and sensex was moving from one milestone to another.

This has bought in new expectations from the investors and they are so high, it is akin to asking Yuvaraj to hitting six sixes an over every time he comes in to bat. Investors now want 50% to 100% returns in less than a month. Is this possible ? No.....It is expecting very high returns in quick time. Normally if you get a return of anything above 20% in a year, it is considered as good returns in stock market since we get less than 10% in an FD.

However there have been many stocks in the past few months which have given more than 50% returns in less than 2 months and some even 100% returns. I had infact given 100% returns as target for one year but they were achieved in a month.

Now investors are caught in two minds, Fear and Greed. They fear that stocks might go down and would like to sell but at the same time they do not want to sell because there is further scope for increase in price.

The best thing to do is keep booking profits after certain levels and also make free shares ie zero cost price and forget them. In this way you need not worry and you can forget the two factors fear and greed. When to exit a stock is difficult to stay but the best thing is to set some target and book profits and then leave some shares free of cost. Always get back your capital at any time and play with free shares.

US Markets tanked on Friday again and we may see some more weakness in our markets this week. Time to buy my stocks at lower levels as you will see another upmove after consolidation.