When a market is consolidating, sitting and watching is a good strategy for positions you already hold, only if the script has good growth prospects in the future and it is still under-valued. For scripts that has already run up quite a bit and there is no compelling reason to stick to it for the future, profit booking should come natually. Fresh buying should be done only in a limited scale.
If you are doing fresh buying or adding to your earlier positions, I will not stop you. Because I do not believe the market has reached full value yet, at least for stocks which I recommend as value based buying. But remember to buy only on correction days like today and on dips (try to buy at the call entry price or below) in the individual stock price as well.
And also do not invest all that you can afford right away. Keep some money away for times when the market will correct again. Like if you think you will invest a total of Rs 20000 on a stock, buy only Rs 5000 worth of the stock. Keep the remaining Rs 15000 for further corrections. Invest progressively, adding to your position in small amounts on days that the script did not do well and you will be relatively unaffected by a consolidating market.
Wishing you investment success and safety from powerfulpicks
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