Bad Days In Stock Markets Are The Best Days In Stock Markets

For most investors, a falling market is a bad market. They panic and exit.

The recent one is the pandemic period from 2020 to 2021. Yes but was that the only fall?

What about:

• • • • The Dot Com Bubble of 2000
      • The Real Estate Bubble of 2008
      • The pandemic period of 2020

    History is full of such huge crashes. But the markets rebounded strongly after a crash. Still, people do not learn from others’ mistakes.

    Agreed, in 2000, the penetration of the Internet was low, so it was difficult to know what to do in a crash. But by 2008, almost every investor had a laptop or desktop with an Internet connection at home or in the office.

    The Internet and YouTube were not as big as they are today (2025), but still with some effort one could easily find out what ought to be done and what not to be done.

    Still, investors made mistakes. Count me in J. Had I held on to those stocks my profit would have been more than 10 lakhs on 50k invested. Unfortunately, I got panicked and took out 7k from the markets – thus losing 43k in the process.

    But what about the crash we are facing today? It is just about -13.70% down from its recent peak on 27-Sep-2024.

    On 27-Sep-2024 the closing price of NSE was 26178. Today while writing this post – it is at 22589. This is -13.70% down. And you know what – this last five straight months of decline for Nifty is the worst losing streak since 1996.

    

    And here are some headlines that I am reading on investors’ behaviour:

    Foreign investors are pulling money out of Indian stocks

    Investors pull out of US equity funds for a second successive week

    FPIs pull out Rs 24,753 crore from equities in the first week of March

    You may think FIIs are pulling out therefore Indian retail investors are also pulling out. The fact is they were doing the same in 2000, 2008 and 2020. And they will come back again soon if not very soon.

Those who will keep patience now will end up making money and those who exit in panic will repent.

So during these times, it’s always recommended to stay invested and if you have money to invest then invest in good quality stocks.

To Conclude:

A stock market crash is an opportunity to buy not an opportunity to sell.
Stay invested if you cannot afford to buy more.
Bad Days in Stock Markets are the Best Days in Stock Markets.

If you want to do my Conservative Options Course you can write to me at dilip@theoptioncourse.com.