Share Market Crash – What to Do? Buy, Sell, Hold?

by Nikesh | Last Updated On September 27, 2022

Panic in Stock Market. Prices going DOWN – LOSS. What to do? Buy, Sell or Hold Shares?

Share Market Crash – What to Do? Buy, Sell, Hold? Panic in Stock Market. Prices going DOWN – LOSS. What to do? Buy, Sell or Hold Shares? Let us understand.

Share Market Crash - What to Do? Buy, Sell, Hold?

Table of Contents

Share Market Crash and Panic – What to Do? Buy, Sell, Hold?

There is panic in the share market. Prices are going down and you are making loss. What to do now? Buy, Sell or Hold shares? Please suggest. These are some of the questions that most investors ask.

Here are some proven tips to follow when there is huge crash great panic and volatility in the Stock Market in India:

1. Do NOT Panic with Good Stocks

Assuming that you have done all study and research in selecting stocks, there is no need to panic when there is huge volatility in the share market or even if your stock is making loss.

The point to remember here is that a company and its stock in the stock market are two different identities. Stocks can rise or fall with volatility and bad news. But a good company with good fundamentals and strong top management will have little to no impact.

Stock market and a company work on different principles. A good company will always try to grow. Do not get panicked with huge downfall in the share market or on bad news.

Learn:

2. Analise your Stock

You need to understand the present health of the company that you invested in. Do further research. Try to understand why the prices of the stock are going down. If there is uncertainty and volatility in the market, fear will prevail. This is human nature.

Sudden downfall in the stock market is not the end of the world. Good companies have very strong fundamentals but they are sometimes washed away with bad market emotions.

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3. Never Sell in Panic

Never sell off your stock in this situation and book loss. Instead, contact the “Investor Relations” Department of the company and ask following questions:

Why is there sudden downfall in your stock prices? Are there any bad news or rumors?
What is the company doing about the situation?
What are company shareholders and employees doing with their shares? Are they buying, selling or holding the stock?
Is the company buying its own shares?

With all the answers, you will get a clear picture of the situation that will help you what to do – Buy, Sell or Hold the Stock.

Learn: Volatile Stocks – Should I Buy?

FAQs: Buy or Sell Stocks

Is it a Good Idea to Buy and Sell Stocks?

Yes, it is Good Idea to Buy and Sell Stocks. Emerging and Developing Countries like the Indian Economy will keep growing for the next several Years. Investors must cash upon this opportunity. Investment in stocks is also a great way to defend inflation.

When Should You Sell or Buy Stocks?

Buy Stocks When:

There is Market Crash or Correction;
Undervalue Stocks with Good Growth Potential;
The company shows growth of about 20% to 25% in last 3 years and last 3 quarters;
Leading mutual funds are investing;
Leading and trending sectors such as Textile Stocks

Sell Stocks When:

Other opportunities can earn a greater return;
Stock is plunging;
Your expectation is not met;
Your stock has made new highs;
Earning of a company is not improving over 6 to 9 months.

When Should you Cash out Stocks?

You should cash out your stocks when:

Your investment goal is met (OR Not Met);
Company Acquisition;
You need the money;
You need to Reshuffle your Investment Portfolio;
There is Better Investment Options for High Return

Is it Buy or Sell Market?

You can understand if it a Buy or Sell Market, if you understand When to Buy or Sell Stocks.

Conclusion

I hope now you understand what to do when Share Market Crash – Buy, Sell or Hold?

Please SHARE with others. Thanks!

Is it a Good Idea to Buy and Sell Stocks?

When Should You Sell or Buy Stocks?

When Should you Cash out Stocks?

Is it Buy or Sell Market?

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