Stay Positive in Negative Market

Recent market condition has tested the patience of many of us. All of us know that stock market pass through various trends and phrases. Different waves in market whether up or down it affect our life a lot. Sometimes there is bull phrase or at times we face bearish phrase and at times there are corrective or steady market condition. Whatever may be market condition one should always know that these phrases come and go in periodic manner depending on various market factors that affects stock market.

There are various factors which affects the market condition. Some are directly related to business and economic condition of the country while some are remotely related to stock market. Such factors are:

• Overall situation of the economy of the country.
• Export and Import ratio.
• Inflation
• Price Index
• Interest rates
• Political condition of the country
• Condition of the foreign market

During Bull phrase the market is always at its best and this automatically boost the buyer’s confidence level. But definitively there will be period of corrective phrase and market will not always stays at its peak, obviously it will show downturn.

Similarly bear phrase or negative market condition does not stay too long. There are primary things which every buyer should understand during downturn market condition.

• Not to sell off your stock out of panic in order to save some off your investment.
• Wise and smart investor generally wait for right time to sell their stocks.
• Try to avoid toxic people.
• Don’t consider media as the only reliable source for stocks update.
• Always remember that the success depends on your mind set and not on outer condition of the market.

During negative market you could make hefty profit by investing on blue chip stocks that are available at much lower price. Latter on these stocks can give you heavy return.

In fact Swing trading is the right time to make profit in downturn market. T is definitely the good time for short term trading.

Thus in order to stay positive in negative market, you need to overlook market humor. You need to be focused and need to have constant watch on stocks that you have targeted.