We have all experienced with market downturn, There are FIVE possible reason for downturn,
01) Margin call by stockbrokers due to enforced SEC & CSE new circulars. This was result start huge force selling in the market.
02) Less experienced traders (NOT THE INVESTORS) were panic with market downturn and start to selling their shares at a loss. This was created a huge selling pressure on stocks and less demand from cash investors.
03) Traders are not stick to the fundamentals, They are ignoring basic principals of investing such as P/E, NAV, PAT, Future potentials of a company. This was result overvalued of some shares and consequences was end up with huge loos.
04) Government keep selling their EPS's holding shares, Foreigners are keep selling as same as govt. did. This was result excess stock in the market and less demand cause to catastrophic failure to the market.
05) Traders were trade in highly volatile shares and trend was follow the same on last month. This was created a huge squeeze-out under this market condition and start the gain realization.
HOW TO OVERCOME.......
It will be published by my next article...