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Stock Markets’ Conditions and Investment Decisions

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Abstract

The fear of sustaining losses when investing in stocks is sometimes even stronger than the feeling of joy while benefiting from high returns. It has been proven by several researches that people tend to remember the negative feelings of losing money from investing in the stock market than the positive ones associated with making profits. So, one should be careful how to take investment decisions, so that one does not waste money. The negative feelings associated with losing money quickly enter investor’s minds, which can result in blurred and emotional investment decisions. Avoiding such situations includes the establishment of a plan of action before embarking on investing and sticking strictly to it. A sell point should be included as a part of his plan, which represents the point up to which he can keep his stocks.

Bottoms in the investment world don’t end with four-year lows; they end with 10-or 15-year lows.

Jim Rogers

Raj S. Dhankar & Supriya Meheshwari, Market State and Investment Strategies: Evidence from the Indian Stock Market , IIMK, Society & Management Review, June, 2018.

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Authors and Affiliations

  1. Faculty of Management Studies (FMS), University of Delhi, New Delhi, India

    Raj S. Dhankar

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Correspondence to Raj S. Dhankar .

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Dhankar, R.S. (2019). Stock Markets’ Conditions and Investment Decisions. In: Capital Markets and Investment Decision Making. Springer, New Delhi. https://doi.org/10.1007/978-81-322-3748-8_4

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