Is Bear Trend Started In The Nepali Share Market
The share market of Nepal is showing Red indications for the last couple of days. The index is going down and is painful for many investors watching like this. Today the Nepse closes at 2812.38 which is 76.65 below from yesterday. The index itself goes down by 2.65%. Finance sector stocks are majorly impacted followed by Hydropower and Development Banks. Every sector of the index is red and the average volume of trade raises the question that is a bear trend started in the Nepali share market?
Warren Buffet said that his average holding period for any stock is forever. However, we cant see that in reality. By saying such he meant that one must be patient enough to hold a stock until it earns you a good amount of return. This applies to the stock with good fundamentals and dividend history. We can not hold any stock which is not fundamentally strong for a long period of time. The reasons for decreasing index is may be due to the following things.
- Business is getting normal after COVID and people investing the funds in their business.
- Recent decisions of Nepal Rastra Bank on a loan Cap.
- Not having enough cash with common investors/people.
- You are selling gold at a price of silver, Panic sales also might be the reason for the index going down.
- Limitation on Banking and Finance on short-term trades.
- There are political reasons as well.
- Less focus on country economy by leaders from a policy level.
- Broker issues – Not giving proper interest in investors.
These are the reasons that are impacted the declining index of the Nepali share market.
The straight answer to this question is quite difficult to answer however, we cant call the decline is indicating us to get out from the market. Strong fundamental stocks and patience make you wealthier in the stock market. Entering into the stock market assuming I will get an overnight success leads disaster to your wealth. Make sure you are investing rather not trading. I am not saying trading is bad but technical things are for professionals and does not sound good for a normal people having job or business. Trading is no part-time job, you need proper research and studies to get succeed. However, there is no success guarantee so unless you give full time don’t go for the trade.
The right time to invest and enter into the Nepali share market?
While many people panic in this situation, Investors are waiting for market corrections. This is an opportunity for investors and can have stocks that are fundamentally good at a cheaper price. Investing is an art and a good investor is no less than the artist. The compound interest you get on good stocks is no less than magic. Albert Einstein once said “compounding is the eighth wonder of the world” and there is no doubt about it. No country’s economy goes down in the long run, hence picking fundamentally good stock will always give you a good return in the long run.
This is a very good investment opportunity and you must keep your finance ready. The market will rise and there is no doubt about it, It is the greatest opportunity for investors to invest in for the long run. Most of the companies having a good annual report are at a price you cant get later.
You can also start buying stocks if you have already funds at a ratio of 25% and increase it if goes down and decrease it if it goes up. These techniques are applied if you have patience, this is not for trade.
This is not the signal of a bear trend however one can stop loss if you are a trader and reinvest after the strong signal. Always pick a good fundamental stock for investing. Fundamental indicators like PE ratio, EPS, Networth, Net Assets, Dividend history, and Company Management.
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