|
A community of people who love to write
The easiest domain name (Note the .ORG) - Absolutely Free! |
Home | Submit Articles | Login |
| ALL Categories | HEALTH | EDUCATION | FINANCE | TECH | WOMEN | ENTERTAINMENT | TRAVEL | |||
Tips for stock market investing : The do's and don't'sBY: David Prakash Kumar | Category: Business and Finance | Post Date: 2008-06-30
The global meltdown has been going on for sometime now. It started with the subprime crisis. Now recession looms large and with crude prices touching all time highs stock markets are bound to have a free fall. Indian stock markets seem to be falling like a pack of cards while the other global markets are not far behind. For new investors, this would be the best time to invest long term. Here are a few tips as to how to go about in equity market . What you should be doing and what you should not be doing. What you must NOT do 1. Do not panic The market is usually volatile. Take this fact as truth and avoid panic. If the prices of your shares have plummeted, there is no reason to want to get rid of them in a hurry. Stay invested if nothing fundamental about your company has changed. 2. Don't make huge investments When the market dips, go ahead and buy some stocks. But don't invest huge amounts. Pick up the shares in stages. When the market dips --buy them. When the market dips again, you can pick up some more. Keep buying the shares periodically. Everyone knows that they should buy when the market has reached its lowest and sell the shares when the market peaks. But the fact remains, no one can time the market. It is impossible for an individual to state when the share price has reached rock bottom. Instead, buy shares over a period of time; this way, you will average your costs. Pick a few stocks and invest in them gradually. 3. Don't chase performance A stock does not become a good buy simply because its price has been rising phenomenally. Once investors start selling, the price will drop drastically. 4. Don't ignore expenses When you buy and sell shares, you will have to pay a brokerage fee and a Securities Transaction Tax. This could nip into your profits specially if you are selling for small gains What you MUST do 1. Get rid of the junk Any shares you bought but no longer want to keep? If they are showing a profit, you could consider selling them. Even if they are not going to give you a substantial profit, it is time to dump them and utilise the money elsewhere if you no longer believe in them. 2. Diversify Don't just buy stocks in one sector. Make sure you are invested in stocks of various sectors. Also, when you look at your total equity investments, don't just look at stocks. Look at equity funds as well. 3. Believe in your investment Don't invest in shares based on a tip, no matter who gives it to you. Tread cautiously. Invest in stocks you truly believe in. Look at the fundamentals. Analyse the company and ask yourself if you want to be part of it. 4. Stick to your strategy If you decided you only want 60% of all your investments in equity, don't over-exceed that .This will help you limit the losses and protect your capital. Article Source: http://www.saching.com About Author / Additional Info: I am a Physiotherapist by profession and a writer by interest. I have written many articles and blogs. Comments are welcome at prakashdavid@rediffmail.com Additional Articles: * Cigarette is injurious to health * Premises Liability Information * LIFE AS A HOUSE MAID IN MY OWN HOME * Anxiety attacks: How to treat Anxiety disorder naturally * Orlando - Things to do in this great vacation destination Does this article violate or infringe on your copyright ? It is a violation of our terms for authors to submit content which they did not write and claim it as their own. If this article infringes on your copyrights, then use our Contact us form with the detailed proof of infringement along with the offending article's title, URL and writer name. If you do not hear back from us then contact us again in another 10 days. Thank you. Comments on this article: (0 comments so far) * Additional comments are now closed for this article *
Article Views: 1637 
Copyright © 2010 saching.com - Do not copy articles from this website. Important Disclaimer: All articles on this website are for general information only and is not a professional or experts advice. We do not own any responsibility for correctness or authenticity of the information presented in this article, or any loss or injury resulting from it. We do not endorse these articles, we are neither affiliated with the authors of these articles nor responsible for their content. Please see our disclaimer section for complete terms. |
| Home | Disclaimer | Xhtml |