Are you able to spot changing trends ?

April 15, 2025 3 min read

Change Will Always Happen
One of the most important things to understand in investing is that change is natural. If something is not changing, it means it’s not moving forward. Whether it is markets, trends, or sectors—change is always happening. Leadership changes, sectors go out of favour, and some stocks rise while others fall. There will always be a new flavour in the market, and something else will be forgotten. This is not wrong. It is how the market works. Instead of fighting the change, we must accept it and learn to follow it.

Source : Autopunditz

A Simple Example from the Auto World
Around 10–15 years ago, people had very limited choices when buying cars in India. Most people chose either a small car or a basic sedan. Cars like the Maruti 800 and Alto were everywhere. At that time, people believed that these models would always be the top choice for first-time buyers. Since many people were just moving from two-wheelers to four-wheelers, it made sense that the cheapest cars would always sell. But that idea proved wrong.

Shift in Consumer Trends
As time passed, people’s choices changed. Small cars like the Alto started losing popularity. Buyers began to prefer bigger vehicles like SUVs and mini SUVs, even at the entry level. Now, instead of buying a small hatchback, new buyers want something bigger, stylish, and powerful. Maruti’s market share in small cars went down, and SUV sales shot up. A decade ago, SUVs made up just 8–10% of total car sales. Today, that number has grown to over 50%, while small car sales have dropped to around 26%.

Market Trends Work the Same Way
This same pattern of change happens in the financial markets. A country’s currency may lose strength slowly, like the U.S. dollar. Other markets or currencies may rise. Gold may become strong while equities fall. These trends change so slowly that we often don’t even notice them. But over time, they completely shift the way the market works. Recognizing these slow changes can be the key to making smart investment decisions.

Track Changes with Clear Rules
The best way to manage slow-moving trends is by having clear, measurable rules. For example, you can set a rule that if something changes more than 20%, you will change your investment strategy. If something falls below a certain level, you exit. These hard rules help you act clearly, without confusion. They help you catch trends early and avoid losses by following data, not emotions.

Build a Mindset for Gradual Shifts
Most people cannot see these slow changes because they happen gradually. If you only look at the market emotionally or casually, you may miss the signals. But if you track things using simple numbers and fixed levels, your decisions will be clear. That’s how you grow as an investor. Stay alert, stay flexible, and let numbers guide your path through changing times.

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    Are you able to spot changing trends ?