My thoughts for average retail investors like me who are in losses right now. Read it completely and feel free to share your feedback on the same. If you find it informative, PLEASE share it with others

Those who started investing when NIFTY was at 18K plus must be feeling disturbed. You must be seeing losses all over your DEMAT account. First of all these losses are just paper losses, nothing more than that.

What action you should take right now? Review the stocks or Mutual funds you started investing in and try to find out the rationale/goals/thought process with which you invested in them.

Ask yourself whether you researched properly before investing if the answer is yes and there are no red flags in the company just stay invested.

If you invested on "BORROWED CONVICTION" learn from your mistakes, reflect upon them. Don't worry almost everyone has committed this blunder once in their investing journey.

Check such stocks in your portfolio, do some basic research on it and decide whether you want to stay invested in them or not. "It cannot fall further" is not true at all. If the business is not good at all it can go to zero or a single-digit value.

It is ok to book losses and exit from bad businesses, it is like paying fees for stock market lessons.

Believe me or not, the biggest reason for investing in bad businesses is the urge to earn fast and a high rate of return, which can be done once or twice but is not sustainable at all.

Control your return expectation and invest carefully.

These are my thought for average retail investors like me. If you liked it, follow me on @neerajarora91 for stuff like this on Personal Finance and Investing.

Keep this in mind! Always!

Neeraj Arora @neerajarora91

Believe me or not, the biggest reason for investing in bad businesses is the urge to earn fast and a high rate of return, which can be done once or twice but is not sustainable at all.

January 27th 2022

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