What do we do now.....Don't Panic !!

Dear Investors,

With the news out on Sunday that Lehman going to be bankrupt , we said a dull day for markets on monday , but it became a nightmare where at one point of time markets plunged nearly 800 points , thanks to the late shot covering as market closed with a loss below 500 points , Other Asian markets like Japan , China and Korea were lucky as they were on long week end .

Yesterday the mood in US markets was gloomy as the DOW opened with gap down of more than 300 points , at some point recovery had come but that led to profit booking and oh boy DOW closed with loss of more than 500 points and this was the major loss after the wolrd trade attack , There was selling accross the board and specially the financial sector, with economic outlook and present market conditions the bulls in crude are giving up and the crude at one point of time was trading at 93$ and was down more than 6% .

Asian Markets today opened with Bloody red and NIKKIE lost nearly 5% , SEOUL COMP lost nearly 6.5%
China Just opened and is trading with loss of 3.2%

Back to Indian Markets , It is quite possible that we would see one more Black Tuesday in the history of Indian Markets , Expect a gap down opening of 2% and if panic selling continues you can see our markets losing not less than 4% by the end of trading day .

We advice members to short BANKING , METAL , INFRA stocks from word go . also speculative stocks are likely to hit lower circuits for few sessions as money is expected to flow out from this segment. An easy way to trade the market is to stay away from the trading desk. but as an advicing forum we would advice members to buy out at the lowest levels of day , If a stock has la ower circuit of 20% buy 10% of the stocks at the lower cicuit levels , keep putting the Buy order at the lower circuits for some more trading sessions and it will be the best idea to average losses.


NOW AS A INVESTOR ONE SHOULD FIRST ASK QUESTION TO HIMSELF

a) Should I be part of Panic sellers and sell the markets ??

b) Whats the amount of cash should I hold ??

c) Will World markets do patch work to save investors confidence ??

d) Should I leave my stock alone ??

e) will the markets worsen from this levels and may go down or this would be last leg of worst dirt ??

According to us and personally myself , i would not join the panic selling team , once can taste the sweetness of the markets only with patience , At this point of time i would prefer to take 35% out of the stocks and would hold cash . I personaly have confidence that world markets will do their best to help and save the investors confidence and this happened from time to time . yes i would see the worst performing stocks and the stocks that would be affected by the present crisis and would get cash out of them , finally i presonally feel the worst is almost at the fag end and soon ,it doesnt mean 1-2 day may be like 1-2 months we will see markets coming to shape and expect a swift and huge bounce back.