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Investment Do's and Dont's

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  1. #1
    zenilshroff
    zenilshroff is offline Newbie

    Investment Do's and Dont's

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    1. Invest a fixed sum regularly. It is called SIP, (Systematic Investment Plan). It may be weekly/monthly or yearly or any fixed number of days.

    2. Pick fundamentally strong counters.

    3. Book profits when the stock rises above your expectations. That is you purchased a stock at Rs. 100 with a target of Rs. 150 over next one year. You see the stock rise by 15-20% within a month. Sell at least a part of your holdings. This will reduce your holding cost. Even if you sell 25% of the shares at Rs. 120, your cost for 75% holdings gets reduced to Rs. 93.33.

    4. Never panic in corrections/crashes (doesn't hold good if you have companies with poor or zero fundamentals)

    5. Keep updating yourself on companies’ fundamentals. At lest look whether sales and net profits are on the rising line. Do not hesitate to get out of a company when the results are poor.

    6. Always keep at least 15% cash. Invest this in fundamentally strong companies which become available at cheap rates during crashes.

    7. If you are an earning member, keep investing a fixed portion of your earnings in same stocks (again SIP)

    8. If you are a retired person, do not invest more than 50% of your long term money.

    9. If you do not understand what a company is doing in actual day to day business, never invest in it.

    10. Never ignore fundamentals.

    11. People look at losses from latest purchases. They miss out that we purchased this stock partly from profits of earlier purchases. Even after the recent fall, my folio is up almost 50% in last 1 year. But most of my current holdings are in red that too by 10-15%. Learn to keep a correct track of what your original investment was and what is its value as on date. Use good portfolio software on net

  2. #2
    Mamaji2020
    Mamaji2020 is offline Newbie

    Re: Investment Do's and Dont's

    Thanks for thorough list of tips. How risky is the Indian stock market?

  3. #3
    priya0710
    priya0710 is offline eTI Iron
    Following some rules and restricting yourself to be a disciplined investor always helps in making a better investment. Fundamentals of company should never be ignored if you are making an investment in it. Such factors helps to learn about company's performance, its dividend policy, management and more. After complete study of fundamental and technical factors only when can decide whether capital should be invested in it or not.

  4. #4
    Vgupta12
    Vgupta12 is offline Just in!
    Best investment means where a trader got everything he wanted in the market, Getting desire return from market is not so easy for this, an investor has to do lots of hard work and use his intelligence to deal with the market volatility.

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