Saturday, May 23, 2009

What should retail investors do at this point

To buy or hold scrips seems to bother retail investors most during the present bull run. Here are some points for retail investors to keep in mind.

Dos

  • A thorough research before buying or selling of stocks.
  • Hold on to the blue-chip stocks.
  • Stay with your mutual funds if return targets are being met.
  • Follow the thumb rule of selling at every peak and buying during wane but be cautious.
  • Wait and watch for a week or so

Don'ts

  • Don't diversify your portfolio on the basis of a single-day rally.
  • If your mutual fund portfolio on the basis of a single-day rally.
  • If your mutual fund portfolio is not getting the expected return then churn it after a thorough research.
  • Don't buy stocks of companies with poor cash flow.
  • Don't undertake impulsive spot buying of stocks.

Courtesy: Mail Today

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