The stock markets àré àt àll time highs & just like
the last time around whén thé market wàs àt its previous high every ôné
thinks thàt nothing càn go wrong & théré îs just ôné way where thé
market càn go whîch îs UP. Nothing could bé farther frôm thé truth &
this will bé clear frôm thé way thé market behaves în thé next few
months. Here àré à few tips that wôùld hopefully save
you frôm losing à lot ôf cash în thé current frenzy.
Time & again
investors have burnt théîr fingers în thé markets &
here àré some tips tô yôù sô thàt yôù dô not end up
burning yôùr fingers în thîs market.
The number
one tip àt thîs point wôùld bé tô sell îf yôù hàvé stocks &
not tô buy thém îf yôù hàvé cash. The golden principle în thé markets îs
“Buy whén everyone else sells & sell whén everyone else buys”. Simple
enough right? Not really.
Why? Because ôf peer pressure pure & simple. When everyone else around
you seems tô bé having à ball àt thé markets yôù wôùld feel like à fool
if yôù didn’t participate now.
OK
so yôù can’t resist buying àt thîs time thén àt least dô yourself à
favor & stay away frôm unknown Penny Stock and
hot tips thàt yôùr barber gave you. True thàt thé stock
has tripled în thé last fifteen days bùt thàt wàs before people like
your barber started buying thé stock. Chances àré thàt thé Promoter ôf
the Comp. hàvé started buying into thé stock & hàvé spread rumors
like acquisition ôr à big export order tô fool investors & sell ôùt tô
them àt à later date.
Another tip thàt wôùld serve useful îs tô value à stock
based ôn its future growth & not its past performance. For instance
many investors say thàt î won't buy stocks ôf X
company because ît hàs doubled în thé last year. Well ît may hàvé
doubled în thé last year bùt thàt shouldn't bé thé thing yôù should bé
telling yourself. Rather yôù should ask yourself why hàs thîs doubled în
the last year & càn ît dô sô again? There should bé à solid answer tô
your question like thé launch ôf new product ôr reduction în thé
prices ôf raw material. And indeed îf thé answer îs în thé positive thén
by àll means go ahead & buy thàt stock regardless ôf whàt hàs happened
in thé last year.
Another tip wôùld bé tô remember whàt yôù àré buying.
Quite simply investors often forget thàt whén buying à stock théy àré
simply buying ownership în thé companies. Most ôf yôù wôùld know thàt
nothing spectacular wôùld happen în thé Comp. thàt yôù work for, în à
month, théy àré not going tô double théîr revenues & certainly not
double yôùr salary every month. Then why expect anything different frôm
the companies thàt yôù àré investing in. Why expect thé prices tô double
in à month ôr two. Give time tô yôùr investments; don’t reduce ît tô à
gamble. Only whén yôù invest în fundamentally sound companies & thén
give thé investments sufficient time tô grow will yôù see sômé healthy
returns ôn yôùr investments. Ideally à minimum horizon ôf ôné year îs à
good time.
Hope these tips will prove helpful & yôù will make à
lot more în thé stock markets thàn yôù hàvé already
been making. Happy Investing!
