Monday, June 1, 2009

Tips to Invest in the best way .

NEVER forget that what goes up, must come down and vice versa.

This rule, I believe is the cornerstone of a successful and contented life. A sudden rise in the stock indices may have you smiling. It’s the slide that tests your real strength. I have seen may investor losing their money. But i would say that it is not the fault of the market, its your investment strategy that is faulty. Here, I would unveil few tips for better investment outputs.

Don’t panic: As i stated earlier, what goes up, must come down and what goes down must come up. I have seen many small investors start to panic when market comes down and sell their shares and stocks at lower rates. This is wrong strategy and the investors loose . I would suggest them to wait, until the stock rises. The market going down have to rise again.

Invest 60%: When market rises, I have seen many investors, invest all their money in the market. This is wrong strategy. Invest only 60% of your amount in market. Keep 40% of amount for bad situation. Never let yourself with shortage of cash.

Invest in business not in company: Don’t invest only in big companies. To gain a good amount of profit, do your homework ( analysis ) about the small companies in the same business having ability to rise. Always their is the point of saturation in big companies. Remember, we invest to gain profit, not to put our amount in safe deposits.

Don’t be impatient: Don’t react according to market. Make your own plans. Don't be impatient when market goes up or down. React according to your priorities.

Take calculative risk: People say, take risk in market. I don't say to take risk, rather take calculative risk. Before taking risk analysis the market and the company to invest for. Calculative risk always pays.

These are few tips ,by which you will always find yourself in a safer and Profitable side.

No comments:

Post a Comment