Today I read this article : Managing the Pain
The article is in http://www.valureseachonline.com. Its good article & the author has summarized it rightly as under :
The worst real losses are those of investors who got attracted to the stock markets in the last four or five months. Typically, these people have made a series of bad choices. Instead of investing steadily, they have put in large chunks of money at one go. Their mutual fund investments are in untested new funds and their stock investments are in rumour-of-the-day type of stocks that were being pushed by brokers till a few days back. The more recklessly adventurous have already lost large chunks of their investments to repeated margin calls from brokers and lenders.
This is very correct. I remember Investment Advisors keep telling about SIP !! . Which comes true. Even in SIP, you will incurr losses, but it will be less as compared to what happens when you invest in bulk.
But as the author said, its tough for many investors to resist when the market was in Bull Run & everybody wanted to make quick money.