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Markets are falling, panic is rising—but should you really be worried? Here's why stock market risk depends on your perspective and how smart investors stay ahead.
Wed Feb 19, 2025
The other day, I was having a conversation with a friend who recently started investing. He told me, “Stock market is too risky! I don’t want to lose money.” I smiled and said, “It depends on how you look at it.” A lot of people believe that investing in the stock market is like gambling. You either win big or lose everything. But is that really true? Let’s break it down in simple terms.
Markets have been falling, and investors—especially those who entered recently—are starting to question their decisions. Many jumped in when stock prices were at all-time highs, expecting the rally to continue. Now that stocks are correcting, they’re feeling the heat. It’s a common cycle. New investors often enter the market during a bull run—when everything looks great. But when the market dips, panic sets in. Instead of worrying about the overall market, I always ask one question: 🔴 Are you investing in the market, or are you investing in companies?
If you check stock prices every day, you’ll notice they keep going up and down, sometimes wildly. One day, your portfolio looks great. The next day, it’s in the red. This daily volatility makes the stock market seem unpredictable and risky. Imagine checking the price of your house every second—you’d see minor price changes and think, “Oh no, I’m losing money!” But in reality, real estate prices only matter when you sell. The same applies to stocks.
The stock market only becomes risky when you think short-term. If you zoom out and look at the market over decades, you’ll see a different picture. Let’s take the Sensex as an example: ✅ In 2000, Sensex was around 5,000 points
✅ In 2010, it crossed 17,000 points
✅ In 2020, it touched 40,000 points
Instead of focusing on whether the market is up or down, focus on the companies you own.
✔️ Are they still making profits?
✔️ Is their business growing year after year?
✔️ Are they leaders in their industry?
If you’re just starting out, here’s what you can do to reduce risk:
1️⃣ Invest for the Long Term The longer you stay invested, the lower your chances of losing money. Avoid short-term trading and focus on holding quality stocks for years.
2️⃣ Pick Fundamentally Strong Companies Look for companies with good profits, low debt, and strong brands. Think of stocks like HDFC Bank, Asian Paints, TCS—companies that have consistently grown over decades.
3️⃣ Diversify Your Portfolio Don’t put all your money into one stock or one sector. Spread your investments across different industries (banks, IT, FMCG, pharma, etc.). This way, if one sector struggles, the others can balance it out.
4️⃣ Avoid Emotional Decisions Markets will always go through ups and downs. Don’t panic when stocks fall—instead, see it as an opportunity to buy good stocks at a discount!
The stock market is not a casino—it’s a powerful tool for building wealth. But like any tool, you need to use it wisely. The key is patience. So, the next time someone tells you the stock market is risky, just ask them: “Risky for how long?” What do you think? Do you see the stock market differently now? Let’s discuss in the comments!
Kundan Kishore
Educator, Mentor, Changemaker