I got a new chuck of learnings in the realm of investing day before yesterday. Generally, I am a crypto investor, but circumstances made me trade shares and though I am not supposed to be overwhelmed - price numbers, trade volume did overwhelm me . Again, I was not able to book too much profits, this was for my family member, had to operate demat account and sell shares because that family member was not knowing how to operate demat account.
The two shares in question were - ICICI Bank Ltd, it has a BSE(Bombay stock exchange) price index and a NSE(National Stock exchange) price index, I am not sure but I think you can choose which price index you want to acquire the shares on. Day before yesterday, the Indian markets were given a kick, a boost thanks to Indian finance minister Nirmala Sitharaman, announcing COrporate tax cut so that companies have more money to reinvest on themselves and grow, because Indian economy is also under recession troubles like other economies of the world and Government has been adopting various measures to stimulate the economy, rate cut has already been done 4 times I think and another rate cut is expected to be announced in October, but the day before yesterday’s Market boost was because of the Corporate tax cut measure.
The Corporate Tax rate cut announcement said the corporate tax rate would be reduced from 30% to 22%, so the top 1000 listed companies would have Corporate tax savings of at least 37,000 crore that they can use as capital to develop their companies. The ordinance for the tax rate measure was announced on Friday, Saturday and Sunday was stock market holiday. So, day before yesterday, on Monday morning, the stock markets opened and action followed with buying and selling action. I sold the shares too early so could not make substantial profits that otherwise my relative would have been entitled too.
I sold bajaj Finance for 3890 but the stock price reached more than 4000 Rs, which means I should have set alert for Rs 4000 or 3990 and sold the stock then.
I sold ICICI Bank Ltd for Rs 537, when infact this share reached a high of Rs 550.
Therefore, it is just somewhat sad that when I had the opportunity to make money I sold too early.
Chapter is closed, of course, but atleast I got to be aware of the market, my relative would have otherwise held the shares without tracking the price. It is important that you monitor price and book profits to be successful trader.
I am a crypto investor, so I hold the view that the traditional market would crash because of recession and alternative markets like crypto and gold would go up, that people would hedge on Gold and BTC, looks like I have to wait on this. Also, the Indian market is so different from global market, so I need to see if different economic fundamentals apply here.
Anyway...atleast I try to study, volume and historical price values before selling and buying, maybe I will make profits through my trading someday(: , must keep faith in myself.
Post day before yesterday, stock prices have cooled off, people probably have been booking profits.