FOR TRADERS: ALWAYS USE STOPLOSS AND ENTRY PRICE TO MINIMIZE LOSS AND MAXIMIZE PROFITS

OUR MARKETS IN WORST EVER SCENARIO  

Tuesday, October 7, 2008

MARKETS ARE IN PEAK OF ITS VOLATALITY.IT IS THE TIME TO KEEP OUR NERVES AND PASS THROUGH THE WORST PHASE.....
WHAT WE HAVE TO DO NOW AND WHAT ARE THE THINGS WE NEED TO AVOID NOW:
Dos and Don'ts of investing in stocks :
With the markets crashing, it is natural for you to be unnerved, but panicking will not help. Actually it's a once-in-a-lifetime opportunity to buy good stocks with strong fundamentals, but be very careful while doing so.
Don't indulge in panic selling. Stay invested, it is time to buy stocks and not sell. Since very few people can predict market movement, NEVER try to time the market.
To be on the safe side, invest in mutual funds, and don't listen to 'experts' who mushroom all of a sudden and are eager to give you formidable advice. If you are unsure about your research and is not too comfortable with your own judgement, MFs are your best bet.
TO DO:
Invest, based on sound reasoning after taking into account all publicly available information and on fundamentals.
Give clear and unambiguous instructions to your broker / agent / depository participant.
Be vigilant in your transactions. Insist on a contract note for your transaction.
Scrutinise minutely both the transaction and the holding statements that you receive from your Depository Participant.
Keep copies of all your investment documentation.

DONT'S:
Don't deal with unregistered intermediaries.
Don't fall prey to promises of unrealistic returns.
Don't invest on the basis of hearsay and rumours; verify before investment.
Don't forget to take note of risks involved in the investment.
Don't be misled by rumours circulating in the market.
Don't be influenced into buying into fundamentally unsound companies (penny stocks) based on sudden spurts in trading volumes or prices or non-authentic favourable looking articles/stories.
Don't follow the herd or play on momentum - it could turn against you.
Don't be misled by so called 'hot tips.'
Don't try to time the market.
Don't hesitate to approach the proper authorities for redressal of your doubts/grievances.
Don't leave signed blank Delivery Instruction Slips of your demat account lying around carelessly or with anyone.
Do not sign blank Delivery Instruction Slips and keep them with Depository Participant or broker to save time. Remember your carelessness can be very dangerous.

AddThis Social Bookmark Button