I am new to the trading market and have a huge sum of money to invest in the market. Should I invest it now? or should I wait for the market to get cheaper when the correction happens before the budget?
Is it wise to go for fresh investments in the market right now? Since its quite expensive presently.
If i were in your situation, i would park my “huge sum of money” in liquidbees and use a small chunk of the money to learn about investing profitably, and fine tune my strategy.
That way, irrespective the correction happens or not, i would still be prepared. Sure this will take time, but the investment amount is safe and will have the potential to grow at a steady pace.
First thing you should be clear in your mind is whether you want to Invest or Trade?
An investor has a horizon of at least 5 years and operates on the principle of accumulating quality stocks on corrections. Other principles such as diversification, P/E ratios, dollar cost averaging etc. also play an important role. So, if you are an investor and the union budget gives you an opportunity to buy solid stocks are reasonable prices, go for it.
Now, a Trader (like myself) would not worry about the P/E ratios, the valuations or any of the above. A swing trader is simply playing momentum and would try to ride as much as he can up until the event (i.e. Budget). I typically advise to come out of the market before the actual event because no-one knows what’s in the budget and which stocks will get adversely impacted.
So, bet on momentum and not your luck.
Last advice: if you are new to the market, why not spend some time understanding how trading works and not treat this like a casino? I know it sounds boring but instead of going all in (with 30 Lakh), why not trade with something less intense and save your capital for when you really know what’s going on here.
The market is not going away but people who don’t manage their risk certainly do.
@sabyasachi_sadhu, are you joking? if i remember correctly you were saying markets will crash all the time & now suddenly you are saying it will go up 30%. hahaha. this is what happens in stock markets. any tom, dick & harry starts prediction business without any basis.
From your language I can understand who is tom, dick and harry. Anyway I have left joking long time ago, but to understand what I said you need a human brain not a bird brain.