The day Nifty-50 sank 12.5 % & Bank-nifty fell over 16 % !!

A reminder that Market can be gruesome.

Bears were in complete control. Call writers and Put buyers were having party.

Put sellers were getting hammered on the head, receiving margin calls and positions squared in hefty losses.

Bulls were nowhere to be seen.

History was being created as the market crashed within 25 days, fastest ever.

Portfolio was red like a sea of blood.

Not a single stock in green.

For the first time ever in history of capital markets an asset's price went into the negative territory, you were being paid to buy an asset below "0".

I had heard that Market can be irrational but no one imagined it would get this crazy.

Anyway enough of the doldrums and the negative aspect.

Here is an Interesting true story :

My grandfather's savings were parked in bank FD.

I am a 2nd generation investor.

When market fell from 12300 to below 11000 my father and I started buying in small amounts.

Market went down to 10500 we bought a bit more.

I called up my younger brother to ask if he was buying Niftybees index ETF and he said not right now, will buy below 10000.

Within 2 days we saw Nifty50 below 10000 and 3 of us were buying.

Market came down to 9500 and me and my father had invested what we set aside for this purpose.

My brother continued to buy.

Nifty came below 9000 and my brother was out of cash as well.

I was newly married in February and my grandfather wanted to buy me a car and I said I don't need a new car but if I see an opportunity in the market and I am out of cash I will ask you.

In March we 3 were out of cash.

I approached my grandfather for that car money which was about 5 lakhs, It was about 10 % of his savings.

Instead of being depressed about the market fall, I was full of excitement to buy at even lower level as my father once told me about philosophy of Rothschild, Sir John Templeton and Warren Buffet that "Buy when there is blood on the street , even if it is your own".

I got the money and invested it as soon as I saw Nifty50 at the 8000 mark.

My grandfather's money that was invested as the savior of last resort has doubled from there. I paid it back to him with full bank interest.

To connect with me for "Free", you can checkout the links below :

Telegram : Logical Investor

Whatsapp : +91 8527767668

Quora : Trade & Invest

 

Regards !!