Mumbai. Team India has been out of the Asia Cup, but you can also take lessons from your financial life from the mistakes made in the cricket match. As it has been said that the wisest person is the one who learns from the mistakes of others.
Now see, on paper, the world’s strongest team India will be out of the Asia Cup like this, no one had even imagined that if you take the risk of investing or trading without any strategy and without learning from the mistakes of others, then you will find it very difficult. Will be. Today we will point out five such big mistakes that Team India made in the Asia Cup and often such mistakes are made by investors or traders in a hurry.
1. Controlling Emotions
It is often said that 90% of market risk is your psychology and 10% is your skills. When Team India won the first match against Pakistan, everyone celebrated, but in the very next match against Pakistan, Team India was completely defeated. Team India’s overconfidence and undermining Pakistan’s batting was heavy. That is why it is said in the market that being more bullish than necessary also gives a loss in the market. Ignoring global signals and micro data of the economy, if you invest or trade only on the basis of sentiments, then you may also have to suffer losses.
2. Don’t focus on just one sector
Like cricket, the stock market is also made up of sectors. Team India’s strength in the Asia Cup was its batting, but the lack of bowlers like Mohammed Shami and Deepak Chahar always missed him. Bhuvneshwar Kumar and Arshdeep could not sustain Paes. Similarly, if you are investing, do not focus on just one sector. Divide your investments into different sectors and bet on good companies.
Consider this as an example, during Kovid the pharma and chemical sector was on the boom but now the banking and metal sector is on the boom.
3.More focus on all-rounder companies
When we choose stocks, one thing is more in focus and that is the quarter-to-quarter company earnings. In the same way, the all-rounder is responsible for the players in cricket. Selection of a good team was necessary for the Asia Cup. After Avesh Khan and Jasprit Bumrah, betting on Deepak Chahar could have been a profitable deal. But this did not happen. Chahar was left sitting outside. Indian bowling proved to be laggy throughout the tournament. The opposition team was also easily achieving the target of 180 runs.
4. Rebalancing of Portfolios
When we sell one stock in our portfolio, we buy another. Because we feel that this stock no longer has the power it was before. But the fundamentals of the stock we bet on should also be strong. Dhoni’s absence was felt throughout the tournament. The pace behind the wickets like Dhoni is still being felt in Team India. Perhaps Rishabh Pant has not been able to fill Dhoni’s place completely, which is why Rishabh’s batting did not show Dhoni’s agility in the match against Pakistan. Some critics said that if Dinesh Karthik had got the place in place of Pant, the result would have been would have been better.
5. Selection of Similar Shares
In the Asia Cup, the Indian team was feeding two leg spinners. It is just like keeping two similar companies from the same sector in your portfolio. Team India fed both Deepak Hooda and Yuzvendra Chahal while the team needed a good off spinner. It is meaningless to expect momentum after buying shares of similar companies. Keep portfolio diversified. You have shares of different companies whose fundamentals are strong. Companies in the same sector can sometimes spoil your risk and reward ratio. If there is a recession in one sector, then your portfolio will also be hit by recession.
FIRST PUBLISHED : September 09, 2022, 18:41 IST