Any of us who would have studied in a school would have faced the situation of making corrections to an existing project or failing in a particular subject.While making corrections means that we have not focused enough while preparing the project, failing means we have not paid attention to where we lack and taken things for granted.

Stock Market and Studies

Studying and Investing in stock market both need attention. Stock Market is very volatile sometimes and needs your attention all the time. However both can be taken care of if

· In School you get a Good Teacher and Guide

· In Stock Market you get a good Trainer and Mentor

What is Stock Market Correction?

A Stock market correction is when the market falls 10 percent or more from its 52 week high or recent high position. This creates a stir in the investors mind and leads to different reactions.

· An experienced investor would welcome the Stock Market Correction as they know that it’s a phase which can give new opportunities to increase positions, re-accumulate, re-enter and lead to better performance at a later stage. Stock Markets usually make up for the losses in about 3 to 4 months time.

· A beginner investor would get panicky and would start selling off the stocks with the fear of losses due to lack of understanding of how stock markets and correction phase of market work.

What is Stock Market Crash?

A stock market crash stock market crash is a rapid and often unanticipated drop in stock prices. It can be caused by side effect of major catastrophic events, economic crisis or the collapse of a long-term speculative bubble, market percipient’s panic etc. These kind of events may lead to deeper corrections and market may falls another 10 percent or more leading to an overall fall of more than 20 percent over a relatively short time frame. A crash can frighten the consumers into investing less and maybe lead to higher selling of stocks at a lower price. As the decline continues, the economy gets impacted which can even lead to a recession.

How to protect yourself during Stock Market Correction or Crash?

It is important to protect yourself before the prices begin to fall i.e. when the market falls even by 5%, you should be a little cautious as the process from fall to correction to crash can be very quick sometimes catching the investors off guard.

Some Tips to keep yourself safe are

· Hold a balanced mix of Stocks, Bonds & Commodities

· If you don’t need the money for long then have higher mix of stocks

· If you need to have higher liquidity and money on an ongoing basis then investing in bonds is a good idea

· Rebalance your portfolio each year according to market conditions and your desired goals based upon your risk taking capacity and plans

Investing in stock market is a tricky business and needs almost daily or weekly monitoring of the market and your stocks. In such a scenario a good Expert and Mentor can help you ride the wave of the Stock Market with ease and grace due to the great experience and expertise he/she has.

So, while you continue to earn and invest, we take care of the rest to give you peace of mind such that your earnings and investments both grow well. For more information visit us at www.prajinvestments.com/. or write to us at guidance@prajinvestments.com