taming the bull

What I write is nothing profound; but, usually, I find what most others write about investing just crap. So I read those just for fun and entertainment. I believe that it is always better to do your own research and then act based on it. Two advantages: one, you will gain knowledge along the way; two, you will learn to both appreciate research and luck, and accept your mistakes. Blame game is no good; learning lessons from mistakes is better. 

The markets are on a high, and many call it a bull market. And there is always a dilemma in dealing with it. To buy or not to is the question for genuine value seekers. They may find that it is becoming quite difficult to pick stocks in this market now. Price, based on the fundamentals, may look to be expensive. If you don't buy, and prices still go further, there is loss of profits; ouch, envy. If you buy despite your expectation that a correction is imminent and prices fall, you meet with realized losses; ouch, greed. The bulls too have their ways of dealing with investors. 

To tame the bull, you have to be tactical. There is a limit up to which you can be comfortable in placing buys for individual stocks. A better way of buying is through regular intervals: Buy only the broader index, not stocks, say, each month, either in fixed quantity or cash. Continue this program as long as you can, or at least until the bulls are tamed. 

The bull markets are also better suited for some betting, if you're keen, on the derivatives market; and a better way to do that is with the money separated from investments. It is both fun and exciting, and yeah, can be rewarding too, if carried out methodically; after all, there can be a method to one's madness.

Nifty hasn't got much to offer at these levels unless we have a surprise, surprise on the earnings growth. So it is advisable to show some restraint. For that to happen, though, you have to learn to deal with greed and envy first. Otherwise, it could be a greater fool's story, which left even one of the greatest minds in history dumbfounded and sort of starstruck.