The most frustrating and haunting thing in Securities Exchange is selling your stake today at a throw away price only to wake up the following day by surprise all authoritative newspapers business section is hit by reports of super profits as high as 10 times the previous performance. Imagine your indignation at this scenario after holding your shares for more than a year!

You had warned us that last year was just the beginning and the way this year has started, you were right.
On the last day of trading I noted they tried to make the index gain many points and it crossed that psychological 4000 point mark. Clearly that was in vain.
This bear run I'm looking to benefit from the low prices and hold to eye opening gains in the next few years. It's like the 2011 bus came back to pick more passengers because that bull run was short.

@spikes, the market will rebound but as long as 4000 critical support has broken down that rebound will not be sustainable because the investor psychology has been shredded. This is what makes sellers stall the bulls as they pile up to cash out of losses as the rebound gives them lesser squeeze. Plenty of investors are trapped in bad positions and the rebound will likely tempted them to sell on the bounce.

We will get a proper bottom when it feels like it's bottomless. 2015 selloff didn't trigger that kind of sentiment. If you were in the market back in 2008 (GFC) and 2011 (KES crash/inflation spike) you'd understand that sinking feeling (capitulation). At that point a lot of guys give up on stocks (no sellers). That's when the major bottom kicks in.

You had warned us that last year was just the beginning and the way this year has started, you were right.
On the last day of trading I noted they tried to make the index gain many points and it crossed that psychological 4000 point mark. Clearly a that was in vain.
This bear run I'm looking to benefit from the low prices and hold to eye opening gains in the next few years. It's like the 2011 bus came back to pick more passengers because that bull run was short.

http://www.marketwatch.com/story/the-bear-market-in-stocks-has-finally-arrived-2016-01-20

There are four psychological stages that people go through during a bear market. Right now, investors know the market is struggling but most believe it will come back. In fact, many see this as a buying opportunity. Here are the four stages:

Stage 1: Denial

Right now, we’re in the denial stage. Anyone who is bullish is too stubborn to change his or her view. Many people have their head in the sand, and some may not even look at their January statements. Many believe the market will come back. Right now, many are still buying the dips, which does not work in a bear market. This is similar to what has happened to oil.

Stage 2: High Anxiety

In this stage, many investors are like a deer in the headlights. They are frozen and nervous but don’t do anything. They are told by brokers and financial experts to stay calm and don’t panic. We haven’t reached this stage yet.

Stage 3: Fear

In this stage, the rampant bulls finally realize they are in trouble. If they have bought stocks on margin, they might be getting calls from their broker to add money to losing positions. In this stage, they are watching in fear as their portfolio burns. They reluctantly start to take action as fear increases. Often they say to themselves, “When my stock gets back to even, I will sell.”

Stage 4: Panic

This is what I call the “uncle” stage. This is when panicked investors throw in the towel and take action. They want to get out of the market while they still have something left. At this stage, there is huge downside volume and double-digit declines on the indexes. At the end of Stage 4, many people vow to never buy stocks again. We are not even close to this stage yet. Typically, we hit bottom when investors capitulate after losses of 20% to 50% in their stock portfolios.


At which stage do you think the NSE20 is parked?

Watch out for mpesa bank... The swift drops are coming!