Fundalyse

Ever had a stock market loss? It's worse than heartbreak.⁣
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The stock market can make you a millionaire over time. It can turn you to a beggar overnight. If Rocky Balboa was to describe the market, this is how he would put it. ⁣
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''The market ain’t all sunshine and rainbows. It’s a mean and nasty place…and it will beat to your knees and keep you there permanently if you let the market… it’s about how hard you can get hit, get up, and still keep moving forward.''⁣
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To make sure that you continue to stay in the game and win is all about risk management or we call it - damage control. Investors and traders taking a loss will come in many pains; an ant bite, a wasp sting, a heartbreak, or a venomous snakebite and you don't want to end up with that as it will decimate your portfolio and your spirit.⁣
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Most players in the market enjoy reaping profits during a bull run with heavy equity exposures, but when a major correction takes place or volatility takes place, the amateurs are left nowhere to run but burn to the ground and never return. It's because they are not trained to face the situation and become disciplined.⁣
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Successful players are trained and gain XP with time. They must learn how to cut their losses short. This means selling a stock when it's down from your purchase price. The fact is, no one likes to sell for anything for a loss. It's an admission that you made a mistake and a slap on your ego. But if you can set your ego aside and the emotions, you can take a small loss and still be fit enough, both financially and mentally, to invest the next day. ⁣
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When you look at the returns a stock requires to breakeven after a dip, the percentages highlight the damage a loss can do to your portfolio. The returns needed to recover from a loss becomes exponential and gets more disheartening with the fact that the market tends to drop faster and move up slowly. Therefore cutting losses ASAP prevents you from suffering a devastating blow that you may not recover from. ⁣
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Share this among your friends so they will learn to manage their losses effectively. ⁣
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@ Colombo, Sri Lanka

When the warlord in Casino Royale asked Le Chiffre whether he believed in God, Le Chiffre replied, '' No, I believe in a reasonable rate of return'' ⁣
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We believe in that too!⁣
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Just only two weeks only before the big day for this quarter, this election has been quite a different one than the any which the market has witnessed before. COVID19 still lurks around and a rise in the number of cases especially in Colombo affects the market drastically by performing negatively. ⁣
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However, just as we mentioned in our earlier election post, the market went through correction by taking a 5.5% dip before rebounding back to the 5000 levels. You could blame it on the COVID or you could blame it on brokers or whoever, but as Thanos said, it was inevitable. ⁣
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The market will be positive during the next 14 days by contributing gains to the ASI. Fundalyse Intelligence research and data show the most active and heavily contributing sectors to the ASI will be the BNK, INS, MAT & CG sectors. Large positive gains will be seen especially in the MAT and CG sectors. So just like you hoarded on groceries and canned mackerel tins before the lockdown, now and the next few days will be ideal to hoard on the stocks which will give your exponential gains close to the election. If the market believes President G's administration which is favored by the market currently can secure the majority, we would be able to see extra abnormal returns close to the main day and after the election day. Once election day is over, if you wish to get out of the market after the election, the ideal days will be within +1 to +7 days as the market shows a U-turn by day +8.⁣
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The above stock is what Fundalyse believes would be the top contending stocks during the next two weeks. To get the unblurred insights, all you to do is be a follower of Fundalyse, share this story on your feed and tag two close people who you think will find Fundalyse useful and exciting in the comments section and we will drop you the insights to your inbox.⁣⁣⁣⁣⁣
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@ Colombo, Sri Lanka

Your plus one’s PMS is hard to handle? Wait till she sees you during the blow-off phase!⁣⁣⁣⁣⁣
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The stock market is known to make people rich; it could punish you for being stupid and take you from ordinary joe to homeless joe in 100-0. This is not gambling! It’s ignorance of how the system works. The market works in cycles just like any business or an economic cycle and you are not aware of it. We are here to remind you it exists with a twist using emojis. We use emojis in our texts so it doesn’t look like a straight face response. It avoids misinterpretation of your pun or sarcasm or whatever the message is. Emojis are the final garnish and make it more exciting and interesting; and that’s what we did to the ASPI.⁣⁣⁣⁣⁣
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Apart from the fundamentals determining the true value of a company, the market is driven by Fear and Greed. We took emojis and placed on top of the trend line which is an actual representation.⁣⁣⁣⁣⁣
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𝗦𝘁𝗲𝗮𝗹𝘁𝗵 𝗣𝗵𝗮𝘀𝗲 is where seasoned investors collect discreetly without triggering prices or volumes. A time-consuming process that requires patience which many lacks. Instead of going for chunks, it’s about bite-size pieces. This is where you become filthy rich if you collected. However, the previous crash has scarred most of you and your gut starts to flip when you think of re-entering.⁣⁣⁣⁣⁣
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𝗔𝘄𝗮𝗿𝗲𝗻𝗲𝘀𝘀 𝗣𝗵𝗮𝘀𝗲 is where the institutions and other players start accumulating after checking up with their guts. Fashionably late to the opening but not have missed anything significant. During this period, no price fluctuations but volumes to tend to increase gradually eventually creating a trend like Tik Tok videos.⁣⁣⁣⁣⁣
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𝗠𝗮𝗻𝗶𝗮 𝗣𝗵𝗮𝘀𝗲 is where the party has turned out to be wild like Project X or Wolf of Wall Street where everyone is getting high and greedy filled with lots of attention. Everyone wants the action and willing to pay any price due to FOMO, creating a bubble.⁣⁣⁣⁣⁣
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𝗕𝗹𝗼𝘄𝗼𝘂𝘁 𝗣𝗵𝗮𝘀𝗲 is where the big boys are leaving the party knowing it’s time. They start selling all of their holdings triggering a bear market. The party is over and your depressed, angry and hungover.

A bear in the market is a destructive force of nature. It is a necessary evil to punish greedy investors and ignorant ones, which in result allows new entrants into the market since everything every day is on Black Friday Sale.⁣
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Bears are fierce and they can give you nightmares. Pessimistic by nature, these investors or traders are the opposites of a bull. They are convinced that the party is over and everyone needs to be pushed away from the building or cliff. They are certain the market is headed for a fall and swipe their paws left and right driving stock prices down. They decide the speed and pace of the fall and most of the time in this period you will be losing money apart from a dead cat appearing and bouncing off occasionally giving you a chance to make some money in between. [will explain in the next post].⁣
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A bear market appears when the economy is bad and recession is looming. It's subtle like a thief who would come for blood instead of honey and you wouldn't know if they are here for good until you have lost 20% or more of your money without recovering in a short period. Bears tend to stay longer in Sri Lanka unlike in other countries. The best thing to do during this phase of life is to contemplate on the good times you made money or tried to at least and stay on the sidelines until the country and economy shows signs of optimism and growth and start buying again.⁣
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The notable bear market was from 2011-2012 and the longest in Sri Lanka was from 2015-Present.⁣
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Tag your bearish friends in the comments 😎⁣⁣⁣
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