- Dont sell immediately after seeing the results. A stock which moves up despite a very bad result, is certain to go places. Read between the lines.
- If u r holding a stock for a long time, dont sell it when it gives u small profit. It is almost certain to run away once u sell. The decision to sell is definitely makes you feel that "I held it for 2 years, I should've held it for 2 months more"
- Dont get carried away by what you hear on TV or read in news papers and Magazines. Close ur eyes and think for a minute if this business can grow in next 2 years.Make a detailed study if u want to commit big funds.
- Dont shuffle ur portfolio too often. It only fills the pockets of ur broker and no need to say that the money comes out of ur pockets.
- If you are in need of funds and have to sell some stocks from your portfolio forget about the price at which u bought a stock, but list the stocks u must hold, sell the stocks which come last in priority
- If u've entered into a stock purely for intraday trade, then dont take it home just because u r in loss and dont sell a stock which u wanted to take delivery just because u r in profit.
Thursday, August 14, 2008
Mistakes investors should not commit
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