The Dangers of Trying to Time the Market

Today’s Daily Byte

Another day unfolds, and the markets continue their upward trajectory, with disbelief in many corners. The Nifty is nearing 26,000, and today we’ll be discussing derivatives disaster limits reached. SEBI has released a new report on derivatives and how individual traders are performing, which we’ll explore in the video

Reading Time : 4 Minutes

Effect of timing the market

Imagine investing $10,000 in the S&P 500 over a 20-year period. If you stayed invested the entire time, your investment would grow to $64,000. But what if you had missed the seven best days during bear markets? Your investment would have only grown to $29,000. And if you had missed the 20 best days, it would have shrunk to $17,030.

Reading Time : 3 Minutes

Have the right expectation

The current market environment is extraordinary. For the past 53 months, the Nifty 50 total returns index has not experienced a 5% decline from a close-to-close basis. This is a remarkable feat, especially when considering that such declines were commonplace in the past.

Reading Time : 3 Minutes