Stock market Woes : what to do

Hello everybody.

I am sure many of you are in the dumps with heavy losses and wondering what to do. I too have heavy unrealized losses sadly mostly on fundamentals.

Some of us were watching for 7000 ASI resistance which was easily broken again. What is the next level. Watch around ASi 6870 and then 6800.

Most people would have probably noticed that your losses are growing exponentially since 2-3 days. RSI is at a 2 year low. ASI at lowest since January! Market is heavily oversold now. . here are no macro reasons for this to happen, as CSE is as a whole is not overvalued like in september. There are plenty of good shares left ( ofcourse there is crap which killed the market too) which are also going down continously due to reasons which have been already discussed in the forum.

Importantly what to do now?

1) First remember that share market is like life. There are ups and downs. It won't go up continously. When the bear hits he can rule for awhile as we see. This is a bad down. If you are an investor with fundamentally sound shares this is the time to exercise patience and wait this crisis out. Remember we should be investing not gambling. Investment take time to realize. Do not Panic

2) As we are already in a hole stop digging further especially if you are on credit. There are many shares at more than bargains which can be tempting. But if we buy today , it appears that tommorow it will be cheaper and we make further losses. So stop digging to identify how far this goes. Fundamental and technicals are not always working in market like now. If you must buy
a) buy in smaller quantities with your own money ( not on credit)
b) preferably identified fundamentally sound shares which has dropped a lot already or at their all time lows. Observe that some share are still resistant to big drops

3) If you must trade, trade only if you have experience. There are opportunities but only for the experienced. Newcomers becareful as day trading might burn your further. In markets like this it is best you do not take speculative home at the end of the day.

4) Try to identify your weak shares in your portfolio. At some point market is going to turn . At that time you have the option to dispose them with a smaller loss. Have the money ready to invest in good shares. We learn our lesson through experience. Try not make same mistake again. CSE is another facet of our life.


Though I try share my thoughts in a positive manner at this time be aware of the market we are in right now as above. We went through worser times during the war period. For example, I saw my DFCC drop to Rs 50 bought at Rs 140. It gave me nearly a heart attack. But I did not panic and held. Then it went to over RS 400 last year and I was a victor.


Hope sooner than later market might take a turn atleast for a short while. There will be green patches even in bear markets. Be ready for that and you will know what to do then.


Also SEC and Goverment is surely aware of this bad situation and hopefully they will not also let our market go below a certain level ( I do not know what though).

Let us be strong. Let us act wisely now. Let us not contribute further to this downfall. We will all get through this hopefully smarter?


Good luck.

As past slstock with a great work

hope can be far away but thank s for giving some kind words and hope for better future ,
thanks brother

Agreed with slstock .. I also think government will do some thing because they want to show market performs wonderfully well after finishing war and economy is booming..

Government will do something?!!?
So, will there be an announcement saying credit facility will be extended until end of next year??

PS: Above supposed to be just a joke. Let's have a little humor to fade away the stresses these days.

Thanks Slstock for the wonderful article. +rep

econ wrote:Agreed with slstock .. I also think government will do some thing because they want to show market performs wonderfully well after finishing war and economy is booming..

What do you think the government should do? Open the private pension fund and ask them to buy these fundamental blah blah over valued shares?

insidertrader wrote:

econ wrote:Agreed with slstock .. I also think government will do some thing because they want to show market performs wonderfully well after finishing war and economy is booming..

What do you think the government should do? Open the private pension fund and ask them to buy these fundamental blah blah over valued shares?

I think they may change the credit rules but this is only my opinion.

Well said slstock, well said.

A very good article. i also think that the Patience is the key if you have bought fundamentally strong shares. Specially these days retailers should not go after rallies that will hurt you and the market. Manipulators will be happy

NEM wrote:A very good article. i also think that the Patience is the key if you have bought fundamentally strong shares. Specially these days retailers should not go after rallies that will hurt you and the market. Manipulators will be happy

Today i wanted to shut down the computer for long period because i dont want to see my PF it gives me a big headache, but after reading this article it gave me some ++ mind.. thank you .

NEM wrote:A very good article. i also think that the Patience is the key if you have bought fundamentally strong shares. Specially these days retailers should not go after rallies that will hurt you and the market. Manipulators will be happy

I also stick to fundamentals, wait and see for few more days, hope all these things come to an end soon. I don’t try to sell and buy other stocks that can unnecessarily add selling pressure to my own shares. Having waited for so long why not wait for few more days.

well said slstock, I think this rough period want bother the long term investors much. But people who make a living out of day trading will be very badly hit. At CSE we dont have the option to short sell, so day by day it's getting nearly impossible to day trade successfully. Also, the drop in volume is not helping the cause.

This hurts long term investors badly when the current value is much lees than the initial investment value, that is the main reason to say that this is not the ideal time to exit. There is no other alternative other than to wait and see.

I think if they allow market to drop further recovery is much more difficult. It is time to put an end to depreciation. Then there is a chance of quick recovery.

ShareShares wrote:This hurts long term investors badly when the current value is much lees than the initial investment value, that is the main reason to say that this is not the ideal time to exit. There is no other alternative other than to wait and see.

What if we all do not sell fundamentally strong shares at lower prices..... So no body can take the price further down... :lol!: I know market behaves like human mind... Its rarely we can see every body join together and try to get profit by uniting.. Everybody is trying to jump first and try to be a winner...

If you investigate (if already not done) your shares annual reports and past earnings for 10 years and future potentials you can understand whats it value and whats it value in future. Business does not going to get down because market is going down.. Hold on... Don't sell at a loss unless u see a better share trading at lower price...

ipoguru wrote:

ShareShares wrote:This hurts long term investors badly when the current value is much lees than the initial investment value, that is the main reason to say that this is not the ideal time to exit. There is no other alternative other than to wait and see.

What if we all do not sell fundamentally strong shares at lower prices..... So no body can take the price further down... I know market behaves like human mind... Its rarely we can see every body join together and try to get profit by uniting.. Everybody is trying to jump first and try to be a winner...

If you investigate (if already not done) your shares annual reports and past earnings for 10 years and future potentials you can understand whats it value and whats it value in future. Business does not going to get down because market is going down.. Hold on... Don't sell at a loss unless u see a better share trading at lower price...

Thanks for advice and sharing your experience. . I do not see better options, other than existing options, they are much worse than the existing shares. If I change I may experience much worse losses as they are very unpredictable and there is no real basis for the rapid increase in prices recently.

Great work brother..... You wiped my tears.......

Thanks "slstock" for encouraging our members.
I feel there should be some recovery before 30th June.
Coz Q2 reports will based on current market situation,
So some big institutional investors will move up their own shares.

But problem lot of investors don't have cash in balance to buy any shares due to recent big IPOs.

I think IPO fever is also over , next they get lot of funds as refunds.

Really interesting and motivational thread slstock. +rep from me.

NEM wrote:A very good article. i also think that the Patience is the key if you have bought fundamentally strong shares. Specially these days retailers should not go after rallies that will hurt you and the market. Manipulators will be happy

I stick to technically sound stocks… with a new surveillance system in place there less room for misuse in future. .. real investments may then come back to the stock market.

ipoguru wrote:

ShareShares wrote:This hurts long term investors badly when the current value is much lees than the initial investment value, that is the main reason to say that this is not the ideal time to exit. There is no other alternative other than to wait and see.

What if we all do not sell fundamentally strong shares at lower prices..... So no body can take the price further down... I know market behaves like human mind... Its rarely we can see every body join together and try to get profit by uniting.. Everybody is trying to jump first and try to be a winner...

If you investigate (if already not done) your shares annual reports and past earnings for 10 years and future potentials you can understand whats it value and whats it value in future. Business does not going to get down because market is going down.. Hold on... Don't sell at a loss unless u see a better share trading at lower price...

So.. wait ?

Thanks for encouraging note.

Good post. Agree with you.