There's a popular universal saying about stock market:- "Bulls make money, bears make money, pigs get slaughtered."
1. In stock market farm, typical animals are bulls (who buy undervalued stocks and wait for them to rise), bears (who sell overvalued stocks and wait for a fall) and pigs (greedy persons with no investment strategy).
2. Since stock market moves in cycles, for umpteen reasons, there are periods when bulls and bears make money because they know that rallies / crashes don't last forever, hence they book profits and move out in time.
3. Pigs, however, enter in last leg of a bull market, when smart investors are leaving, and exit at bottom of a bear market, when smart investors are entering.
4. Price manipulation is rampant here, unlike developed markets and, hence, this saying is more true here.
5. One can avoid being a market pig by investing in thoroughly researched stocks with good fundamentals and reasonable valuations.
6. If this rigorous exercise is difficult due to lack of time or expertise, or due to inherent greed, it's better to avoid entering stock market directly by handing over this job to professional fund managers.
1. In stock market farm, typical animals are bulls (who buy undervalued stocks and wait for them to rise), bears (who sell overvalued stocks and wait for a fall) and pigs (greedy persons with no investment strategy).
2. Since stock market moves in cycles, for umpteen reasons, there are periods when bulls and bears make money because they know that rallies / crashes don't last forever, hence they book profits and move out in time.
3. Pigs, however, enter in last leg of a bull market, when smart investors are leaving, and exit at bottom of a bear market, when smart investors are entering.
4. Price manipulation is rampant here, unlike developed markets and, hence, this saying is more true here.
5. One can avoid being a market pig by investing in thoroughly researched stocks with good fundamentals and reasonable valuations.
6. If this rigorous exercise is difficult due to lack of time or expertise, or due to inherent greed, it's better to avoid entering stock market directly by handing over this job to professional fund managers.