Anil Singhvi on biggest lesson from Sensex, Nifty crash and 'mother of all markets'

As Sensex tumbled 1407 points and Nifty ended below 13,350, Zee Business Managing Editor Anil SInghvi had a word of caution for investors. He said Monday’s loss clearly shows why it is important to trade with stop-loss and follow a disciplined trading practice while executing trade.  

“We always think that market and trade won’t go against our calculations. But everything does not go as planned always. There are certain lessons from Yesterday’s market fall, it is important to maintain stop-loss. Stop-loss acts as insurance in this kind loss. So, everyone should practice this habit irrespective of market gain sometimes against your calculation,” Zee Business Managing Editor said.  

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कल की गिरावट से सबसे बड़ी सीख...

अनिल सिंघवी- पैसे कमाने के साथ-साथ पैसा बचाना भी जरूरी... स्टॉपलॉस के साथ ट्रेड लेना और उतार-चढ़ाव संभालने का तरीका कल की गिरावट से 2 बड़ी सीख है#EditorsTake #StockMarket #Nifty #DowJones @AnilSinghvi_ pic.twitter.com/IrIasOoEeo

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He said a correction was due and it was also anticipated by everyone. “ It was not clear when it will come and of what level and proportion it will be. We were clear about it, but even we failed to anticipate this sharpness in the correction. It happens many a times that all gains made in the last 15 to 20 days are wiped out in a single day and yesterday was that kind of  day,” said the Market Guru.  

He said everyone should learn from yesterday’s mistake and ensure that they put a stop-loss and trade in a disciplined way. He said people should know that the market is not as easy as we think it is. “Biggest lesson from yesterday was that you should not only know how to make money, but also know how to save it. Even if you lost money yesterday, you should not lose experience and use it in future while trading in similar ups and downs. So, trade with stop-loss and learn how to tackle volatility. If you learn these things, these will go a long way to help you trade better,” he said.

Talking about the US market, he said the American market does not depend on global market and yesterday's trading session was one example of it. “ This is why the US is called ‘mother of all markets’. What happens in the world does not impact it, but everyone is affected when the US market is jittery," he added.
 

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