Trading is a good idea, but trading with caution is the BEST. Don't fall prey to easy money!

The domestic equity market continued its euphoric rally with less participation from the broader indices. The bench mark indices have rallied close to 45% from the March’20 levels.

It is observed that the percentage of shares moving in tandem with Nifty50 is far lower than what it was witnessed in previous few weeks. Early June quarter results are being cheered, but a good part of Q1 outcome is yet to come and that may not portray a promising picture.

IT, FMCG and financial services, including banks, have given an early indication that all is well! 

• IT companies managed to trim their operating costs, 
• Banking businesses were given leeway by RBI for delay in NPA classification, 
• Financial services witnessed people staying indoors, transacting digitally to procure insurance policies for their loved ones, along with a lot of trading and investing,

But this may not continue for long.

When ground reality catches up and life after Covid-19 becomes the new normal, the exceptional gains that are being cheered by the Street currently will lose sheen. Markets have a habit of overreacting to short-term events and that is why it would be prudent to avoid consensus views on the Street that IT, FMCG, financial services, including banks, will perform better in the near to medium term. After the country has unlocked the cases are rising every day and the businesses are not operating up to full capacities leaving everyone in tantrums.

Book profits or at least avoid them.

RBI has also cautioned retail investors to wait and watch the situations and not to become anxious on the stock markets.

https://economictimes.indiatimes.com/markets/stocks/news/rbi-signals-quick-withdrawal-of-liberal-measures-to-stem-economic-slowdown/articleshow/77147945.cms

It is better to keep in mind the 1992- Harshad Mehta Scam and be mindful on the company shares one is buying.

https://tradebrains.in/harshad-mehta-scam/#The_Broken_Financial_Environment_of_the_1990s

It is always prudent to make an informed decision rather than blindly following other people.

For a novice trader it is advisable to learn the various techniques like-

• Technical Analysis
• Fundamental Analysis and then start trading.

In the end I want to conclude that, becoming rich overnight is the riskiest thing and there are very very less chances of succeeding. 

Don’t run behind money, but master the trade money will automatically come to you.

People can get in touch with me in LinkedIN, Facebook, Instagram

PK,

PK Enterprises.