All this talk of India Story, this story , that story  by Marketwallhas is a bull !

So, the market is down, but we are in the midst of diehard optimists who will irritate you by all kinds of jargons – India growth story, India bright spot, demographic dividend , stay invested and so on. You get even more irritated  if you have lost money and these guys, some of whom are stars of sorts in the business press,  come and advise you how in the long run, money put in the stock market is safe and more rewarding.  These people must answer first how long is the  long run when it comes to those investors who had put in money in Reliance Power, DLF, Unitech, JP Associates, and even recently Tata Motors . There are thousands of penny stocks where investors have burnt their fingers. Then there are stocks in the hotel industry which have lost 30-40 per cent in the recent past.

My take: Do not listen  to them when they tell you :  it is the best time to buy. In fact, nobody knows when is the best time to buy. Then when should we buy ? This so called contrarian view of buying when everybody else is selling could be quite risky for middle class investors who have hard earned money .  Keep it simple: Buy when everybody else is buying, especially when the big guys are buying. I mean –move with the momentum with a certain stop loss.

Put simply, it is not possible that every time you buy a stock , it is bound to go up; it might reverse immediately after you have bought. Then, even before investing, be prepared to suffer a small loss , known technically as stop loss. FOR GOD sake, respect this stop loss and get out of it , come what may if this stop loss is breached…. Your risk would be just limited. But if you move with the momentum when things improve….chances are your stock will go up to a limit ….but every time, it moves up, keep shifting your stop loss….there is no reason you will lose..

Leave this India story business to these high heeled investment gurus who just want to see the retail investors trapped.