Anil Singhvi decodes Game Stop: Game over, says Market Guru, lists top learnings and importance of stop-loss

Global setup is extremely strong and US markets are seeing a strong Bull Market. Also, major Robin Hood shares have fallen sharply in the US. Game Stop shares were down 80% yesterday night and closed 60% down at the end of the day, revealed Zee Business Managing Editor Anil Singhvi.

Brent Crude price which is trading at $57 today was trading negative not even a year ago. Anything is possible in the markets, it is extremely important to understand that. Similar situation was seen in Game Stop, share price went up very quickly valuing the company in billions and then saw it fall sharply thereafter. The Market Guru said this is a lesson for all, right from the investors to analysts who think they understand everything about the markets.

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Fund Managers and Hedge Fund managers will also learn a lot from the sharp fall in the prices of Game Stop. Demand and supply is extremely important in the markets. Small investors and traders cumulatively can make a huge difference to the share price of the company. Most importantly, stop loss should always be kept intact to protect your capital.

गेमस्टॉप का GAME OVER !

गेमस्टॉप से क्या मिली सीख?

स्टॉपलॉस लगाना क्यों है जरूरी?

जरूर देखें अनिल सिंघवी का ये वीडियो...#EditorsTake #Gamestop #USMarket @AnilSinghvi_ pic.twitter.com/Tc3EY6y3GX

— Zee Business (@ZeeBusiness) February 3, 2021

The top lesson to learn from the fall in Game Stop price is to understand that it is extremely difficult to make big money easily in the stock market. At the current market price of $90, an investor who would have bought at $3 would be in the money but an investor who would have bought at $300 would be in deep loss. 

Alphabet and Amazon have posted strong numbers yesterday in the US market. Dow Futures are trading in Green indicating a strong opening for US markets.