So before talking about the future, let’s come to the present and understand what is going on in the market and whatever impact you are seeing on your portfolio, you are seeing the market getting correct now. Solet’s understand why thesis happening. Now, first of all, let’s talk about the market crash. There is definitely difference between correction and crash, but for Russian investors, if we talk about the Russian stock market, then you must have noticed in the last few days.
In the last5 days, when we talk about the Russian trading system, RTS is an index, 25% broke. 25% broken the last 5 days. Overall, their market broke 17%. You must have heard such newsman times. So we are talking about an index in a stock market.25% break is too much. You will not be able to imagine now because 25% means that if someone has invested 10,000, then he will see 7500, if someone has invested 10 lakhs, then breaking 25% means that you understand that he will see a loss of 2.5 lakh.
It has not happened, obviously, you can say that it has happened on the papers, but when the portfolio goes to red, then we start thinking a lot of things. In fact, your portfolio must have been going down for some time. So now why did I take the example of the Russian stock market? Because if you look at the first reason, you must have read the news about the Russian border tension between Ukraine and Ukraine. So we will not talk about it in detail.
We are talking about. Biden, that he is saying that Russia is going to attack the capital of Ukraine and Russia is saying that we are taking back our army. Sometime she is saying that we killed5 soldiers of Ukraine and the Ukrainians are saying that it did not happen, but they are definitely saying that Russia’s army is tense on the borders.
Now what is happening in the tension? Let’s understand this. I will not go into detail because our topic is something else today, but still I will tell you in short that Russia does not want Ukraine to become part of NATO. Russia wants to create a fear that if you become part of NATO, then we will attack you. Now from there Joe Biden is saying that Russia is fully prepared that he will attack Ukraine and invade and here Russia is saying that am not going to do anything like this, but now what is the problem?
The problem is that Europe and the US both want Ukraine to become a part of NATO. Now if Russia attacks, then first European countries and the US will be against Russia and Russia is getting support from China. Now if thus and Europe are against Russia, then you all already know that Russia is a big exporter of crude oil. So it is an exporter of raw oil. Apart from this, metals like aluminum, copper, which Russia exports in a very large amount and it also exports wheat.
If the Sand Europe are against, then they will impose sanctions on Russia. If sanctions are imposed on Russia, then the crude oil that is coming will not come. The metals that are coming will not come. The wheat that is coming will not come. So what will happen is that their prices will increase, which you are already seeing. If you see the prices of crude oil at this time, then they are at an all-time high. What will happen if the price of crude oil increases? Let’s understand this. When the price of crude oil increases, then overall you know that it will be used in transportation.
All the products that are being made, when we understand that the price of crude oil will affect it, then the prices of things will increase. When the prices of things will increase, then what will happen? Inflation will increase, inflation will increase and if inflation increases, then its effect will also be seen on the economy. So crude oil can affect the whole economy and whatever it is doing. Now what is happening is that when such an environment is created, a war-like situation is created, then what do investors do? Investors withdraw their money from the stock market because stocks become volatile at that time.
Lakethe market is volatile now and where do they invest money? They invest in gold; they invest in bonds where it is comparatively safe. So everyone has to run safe. So what will happen if money comes out of the stock market? The prices of stocks will break and if money is invested in gold, then what will happen? The prices of gold will increase. So what are you seeing now? Gold is also increasing. If gold is increasing, then you are also understanding the reason why gold is increasing.
I am going to tell you about the Dhan app. Now let’s talk about the third thing. You must have heard scam out recently that ABG, the group has a company ABG shipyard limited. This company used to repair ships. Now, CBI has filed a case against this company and said that 28crores to lenders, out of which most of the big banks have come forward that they have to give 7089 crores of ICICI bank. More than 7000 crores of money have to be given by Citibank.
So I am telling you that you can see all the banks and you can see that they have to give thousands of crores of money to the bank. Now they have to give money to the bank, meaning the money is not coming to the bank. So what is happening, you have seen its effect on Bank Nifty, that Bank Nifty is also broken. So you have understood one more concept. Recently, this NSE scams also coming in a lot of discussion that Semi told that three-CEO of NSE, National Stock Exchange, who was Chaitra Ramakrishna, he was accused of scamming.
Now we understand it by not talking about Himalayan Baba and other things that the problem of co-allocation server here, now the problem of co-allocation server is in short that suppose NSE has multiple servers, they have a server for backup, they have an and b, their main server and a server for backup. So the data processing servers, you know that there are big computers. Now if you want to transfer data from one server to another server, suppose a broker’s server has to be connected and it is very far, then the information will reach late.
So what was the meaning of co-allocation that you can put your server near our server, so that you can get the information quickly, but what is the problem in this, that their backup server was connected to the broker’s server. Now what does this mean, suppose you get to know a minute ago or 30 seconds ago that Nifty is going to go up or down or a stock is going to group or down. If you get to know 30 seconds ago, then if you do micro trades of 30 seconds in a day many times, then what will happen, you will make a lot of money. So this lot of money, from 2010to 2015, many people got the advantage of making money. Now who is the main culprit of this, the ex-CEO, the MD of NSE.
so from here people have a little faith that there can be frauds in NSE, now this fraud is not of today, you think that frauds happening now, a CEO was fired in 2016, his salary was also stopped, so this is not of today, now things are coming out, so it happens in India that things are found out later, so this NSE scam which is coming in the middle, because of this, you can see in the market that there is such an atmosphere that we cannot say anything, people are saying that the market will crash from here and go up, so what we had to talk about was that what is happening in the market already.
, so now let’s talk about what is going to happen in the future, now you have understood what is going to happen in the present, for the future I will tell you a statement that you have to remember that markets will always crash and markets will always bounce back, now in this situation, what should the retail investor do, if today I talk about your psychology, because I understand psychology very well, what people do, people see that I have been observing a company for a long time,
now the share of that company has broken 5%, so if5% has broken, then I buy its shares, so if 5% has broken, Theni buy its shares, so if 5% has broken, then I buy its shares, I have 10 lakhs, I put10 lakhs, now you put 10 lakhs, this much has not gone down, or one share is at52 weeks low and you have seen that it is at 52 weeks low, so I buy it, so here you have to remember one more thing that when the market is going down, then no low matters, no matter how much the price can go down and when the market is on a bull run, then no matter how much the price can go up,
so it is at 52 weeks high, so it will not go up, nothing like that has been done and if it is at 52 weeks low, then nothing like that has it can’t go down anymore. Now what do you have to understand here? If you are definitely looking at the price action, then it is a good thing, but what do you have to understand here? There is a concept called averaging. What does averaging mean? You saw that a share been done. Has broken 5%, 10% or 52 weeks came to a low, so I buy it.
We’ve put 10 lakhs, but the next day it broke 4% more. Now you will hold your head that I was wrong. I did not follow the trend. The trend was going down, but I saw this thing and bought it. What should do? This is happening with many people. Here comes a concept which we call averaging. What does averaging mean?
Now averaging is very common in mutual funds, but averaging means that if you are tracking the daily stock, the stock is going up, going down, going up, going down, someday it came down a lot, then it came up a little. So when you see averaging, what does averaging mean?
Now we will understand the daily thing. Daily averaging, brother, one day it went up, one day it went down. I was buying every day because I was buying every day, then my price will come to an average and if the market goes up, because sometimes the market has to go up, you have to understand that the market always bounces back, so when it goes up because your average was made, you will make money, you will get money. Now is it necessary to see the daily stock market to do averaging and buy daily? Is there any concept of daily SIP? Let me tell you.
So there is a very beautiful app that I have recently explored and you can do it too and that app is called Dhan, so we have to logged in on Dhan. Now I will tell you a beautiful feature. Here, as I said, you can do daily SIP. Now, first of all, you go to the watch list, here you can make your 10 watch lists and you can put 100 stocks on one watch list. What does this mean?
You can keep an eye on 1000 stocks. Very cool feature. So here as we go to the watch list, here suppose I have just made a watch list here, now in my watch list there is a stock here, Abuja Cement. Now you have been seeing Abuja Cement for a longtime, you have also done its fundamental analysis, you saw that the result came down in this quarter, because of which its stock is broken a little. So you were all seeing this example, but you think that this stock will perform well in the future.
Now you see here, as you open it, you see the option of start SIP here. You click on start SIP and what you see here is that you want, now you can see its stock price, the markets closed, so it is showing337.35, so you think that in the market, suppose you have 10,000, but you do not want to put 10,000 together. You want to buy one stock daily by averaging it.
So you have selected one stock here, you have selected one stock, as soon as you do set stock SIP, then you will definitely add funds here and after that, every stock will be bought daily. So what is happening here, it is averaging. You are getting the benefit of averaging, well and good. In fact, I got more cool features on money. I told you about the watch list. I will tell you one more cool feature of them that they have collaborated with Trading view, by which you get many of the paid features of Trading view on money.
So when you trade, you must have also got the paid membership of Trading view, but you do not need to take the paid membership. Like if you want to use multiple indicators, then you can use multiple indicators for multiple indicators on Trading view. You can use multiple indicators here, you can use multiple charts, so you have already got these features here and you can go to Trading view and buy and sell directly. This is also a very cool feature of them and you have to go to tradingview.dhan.co when your account will be created on money.
The most lightning fast experience is of account opening, so your account will open very soon on money and you can go and trade. Now when you trade on money, I will show you one more thing that they have a feature that will be very useful to you and that is you can place orders forever here. So forever order is called. I took an example of Ambuja Cement here. Now suppose I like this price more. I say that when the price comes to 300, I will buy it only if I want to buy 100 quantities.
Now I want to buy 100quantities, what does it mean? I want to place an order of 30,000 for example. Now I want to place an order of 30,000, but I do not want to do it now. I want when the price is 300, it comes today or it comes after a year, what will you do for that?
Now in many places it is called GTT order, but you know that it does not happen forever. It expires after some time. Now what will you do here? First of all, you will select the quantity. Suppose I want to buy 100 quantities here, but what do I want the price? I want the price of 300.Now after that, see what is the thing here?
That my trigger price and the limit price here, I have to put it. Now want to take the limit price at 300 and I want my order Tobe triggered when the price of 300 comes. So you can put the price a little higher, then it will be triggered. After the trigger, a signal will go to the exchange in a way and as soon as the price of 300 comes, your order will be executed. As soon as you place the status forever order, you see here my order has been placed. Now my order has been placed here.
When the price of 300 comes, I am going to execute this order. Similarly, this bike order was placed, we can also place the order of the cell. If you have taken some trucks in your portfolio and you want, suppose you have just bought 330 pieces of cement and you want to sell it when it comes to 350, then place a forever order and leave it. Now what is stress-free life? Wherever the market is going, when that price comes, it will sell. Your money will be seen there. And when you click on money, you can earn money by referring. So the account will open on money.
You can refer to it. You can earn around 250 per person. When you click on IPO, there is one more cool feature here. I told you earlier that if you want to apply for IPO, then there is an IPO of LIC. You will get an extra discount and you can apply in the retail quota if you have a LIC policy. You will have to link the PAN card, but you will not have to do it here.
You simply put your PAN number here and enroll as a policy holder of LIC. Your PAN will link it by itself. You do not have to take trouble. This feature is getting a very cool feature here that you do not have to take much trouble. You put your PAN number here and who will link it? Money will link it. So there are many cool features. I have told you a lot. In fact, the main thing I had to tell you today, I hope you have understood that why the stock is crashing.
What will happen in the future, time will tell? No one can predict. But I gave you a memorable statement that the market always crashes and the market always bounce back. So for that, you should use averaging, for which explained the benefits of daily SIP.