A 3% fall in the headline indices cannot be called a crash. In fact, it cannot even be called a sharp correction. It is just a dip! But our markets are not mentally prepared to even for a dip.
Over the past 16 months, we have gotten used to thinking that markets have to go one way up. So, when the markets go the other way, we tend to make our headlines scream even for a marginal drop. Investors need to cultivate a mindset that is prepared for corrections. Only minds which are prepared for a correction will be able to cope with deeper cuts. A sharper cut in the markets would throw up more opportunities before us.
It is very important to be prepared to look closely at such opportunities. By looking closely, you will be able to find a few sound investment opportunities. Preparation helps you to look out for such opportunities when the market throws around a lot of fear. Corrections are the best times to spot the big opportunities.
The opportunity will not look big initially, but as the correction becomes deeper the opportunity will grow in our sight. We will start seeing things more clearly. Things that we started seeing as small ideas will grow into bigger ideas. Knowing how to cultivate your mindset and creating the right approach towards opportunities will help you convert corrections into buying phases. Such an approach will deliver the desired results for an investor.
Every correction must be viewed as an opportunity to prepare and buy big later. Merely being a spectator or a commentator during corrections won’t help anyone’s cause. A better investor is not going to be created by hectic spectatorship. A better investor is born to pragmatic and consistent preparation.