I’m often asked how an investor can behave calmly when the stock markets rise and fall 1%…2%…even 5% in a single day, day after day.
Well, if you see the trend over the past 3-4 years in the chart below, the volatility (sharp rises and falls) has really been on a higher side, except in 2010 when people were on the sidelines after the gains made in 2009 and 2010.
Data Source: Ace Equity, Safal Niveshak Research
Anyways, when the markets rise and fall 1%… 2%… even 5% in a single day, day after day, you need to remember one thing – that it means nothing.
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