Use Volatility to your advantage

Markets have had a terrific run up today. We are living in very volatile times and sentiments are extremely fickle at this stage. We continue to advise caution for traders and suggest profit booking at every rise as this pull back rally could terminate very fast. Investors may wait for the next dip to start buying stocks. Patience and courage are two key qualities required by investors to make money going ahead. Markets are likely to have a lot of bad days going ahead as there is no significant positive trigger in the near future while imminent interest rate hike is just one of the several likely negative triggers going ahead. Sentiments in the western markets are also very fragile. Hence as an investor you need to identify stocks and buy on dips on every weak day in the market. Usually weakness in the markets is accompanied by huge declines and panic. Therefore you need courage and conviction in the long term growth story of India to go out and buy.