Bull Markets Create Stupid Investors And Bear Markets Create Smart Ones, Says Vijay Kedia

No one can claim to fully understand the stock market, even with three to five years of trading experience, according to market veteran Vijay Kedia.

Vijay Kedia highlighted that market routs teach important lessons to new investors, though they cause financial hardships, which are a natural part of the market’s cycle. This is how we learn, mature, and grow as investors, he said.

Kedia's comments come as India's equity markets have fallen into a correction zone due to prolonged FPI selling and disappointing quarterly results.

He compared this situation with a fisherman living near the sea. Though the fishermen live near the sea, that doesn't mean they fully understand it. The sea presents new challenges every day, which is why they remain alert, he said.

According to Kedia, a market slowdown is the best teacher, as the lessons a bear market offers are far greater than those of a bull market.

"Bull markets create stupid investors; stupid investors create bear markets, and bear markets create smart investors and smart investors create bull markets," he asserted.