When Zoom Became a Household Name
During the COVID pandemic, the world suddenly shifted to working from home. In this new way of life, Zoom became a superstar. It offered a simple and easy way to connect through online meetings. Everyone—from schools to companies to families—started using Zoom. As the product gained massive popularity, the company behind it saw its stock price skyrocket. In just 10 months, Zoom’s stock went from around $60 to nearly $600. It felt like a golden jackpot moment for investors.
What Goes Up, Can Come Down
Even though Zoom’s product continued to work well and was still widely used, the stock price did not keep rising. Slowly, as offices reopened and work-from-home reduced, the stock started falling. Today, that same stock which once hit $600 is back to $60–$70—a nearly 90% fall. This leaves many investors confused. The product is great, the brand is strong, and people are still using it. So why did the stock price crash?
The Common Investor Mistake
This situation shows a mistake that many investors make. They think that if a company is doing well and the product is popular, the stock will also perform well. But that’s not always true. A stock can fall even if the business seems fine. Many people enter the stock when it’s at ₹300 or ₹400, hoping it will go higher. But when it keeps falling and 70–80% of their money is lost, they finally panic and exit.
Take Profits, Don’t Wait Forever
The key lesson here is simple. When a trend is rising, take some profits. Don’t wait to earn every last rupee. And when a stock starts falling, exit early. Never hold a falling stock in your portfolio just because you “believe” in the company. If it starts going up again, you can always buy it back. But don’t let emotions stop you from making the right decision at the right time.
Stock Price Is a Signal
Sometimes, even when everything looks good on the surface—market share is growing, the product is working—the stock price goes down. This is a signal. The price is often the first sign that something is not right. It tells you to pause, rethink, and recheck your view. Price is a leading indicator and should be taken seriously.
Follow the Trend, Not the Emotion
In investing, the smart way forward is to follow the trend. Buy what is going up. Sell what is going down. Don’t get stuck just because something once looked good. Trends change, and the market always tells you the truth through price. Listen to it.
From the market chaos of the 90s to mastering momentum investing, Ravi shares his powerful ETCS model for building lasting wealth. Expect practical tips on diversification, avoiding emotional traps, and thriving in today’s India. A must-watch for both new and seasoned investors!
