Dr Haroons Training Centre

Viral fever and stock market crash

Two things happened in last few days . The stock markets of india as well as china crashed and i had viral fever . They are both unrelated i know but read on .

For years whenever shares or stock markets are mentioned the average person says thats so risky . Many do realise that some people make lot of money in the stock market but it is perceived as a risky area at par with lottery . And as everyone knows in lottery you lose a few rupees and very very remotely gain millions of rupees while in stock market people know you can lose as well as gain lakhs . 

Maybe i am wrong but having followed and read about stock markets for last ten years as a hobby i understand stock markets is like a knife . Its only when it is misunderstood and misused that it becomes highly risky . Believe it or not stock market is one of the pillars of any countrys economy and of course no country is into pure gambling . 

Many of you have unit linked insurance plans and those are related to stock market . When you invest in a listed company like infosys there too you are investing in stock market . Mutual funds there too you are knowingly or unknowingly investing in stock market . 

Just like anything there are different ways of getting into contact with stock market and the fear of the markets is due mainly due to the infamous scams which caused people to loss money which was in the media . It was also aggravated by daytrading where people put money in the morning and take out in the evening where risks are akin to gambling as risks skyrocket . 

But people who know what is financial markets and what it stands for doesnt get fearful about it . They are careful yes but not fearful . As economists say considering inflation and taxes investing in stock markets in long term is rewarding . It depends on how you do it and with how much knowledge . Like any science and art , it requires knowledge and experience and more importantly an emotion free fact finding of what are the avenues of investment . 

On a country level or even for active daytraders the stock market crash was terrible . Markets lost more than 1000 points in a single day . This reminded me of my recent viral fever . I was down and out and if you see me on that day and knowing the average behaviour of viral fever panic would  be the norm . 

But just like viral fever which 99 percent brings you back to normal , stock markets over the long term bounces back . Definitely investing in stock markets is not for everyone . But many of you may have indirectly invested in it say in shares or mutual funds . Hence it would be prudent to learn about it , what makes it tick and how it is relevant to your countries and your economy . 

Just eating a sumptous Onam sadya today , im reminded of my biscuit days just 2 days back and cant help but compare our dear old sensex to this . Bad days never last at least in the long term , That is lesson one of stock markets . Happy Onam . 

Anyone passionately interested in shares especially healthcare related please drop in a mail  . We dont give market advice but can give the roadmap of tools in assessing personal as well as company investments in our healthcare finance modules (customised classes held at trivandrum 2 to 8 hour modules ) 

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