“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." - Warren E. Buffett

Friday, December 14, 2007

Rules Rules and Rules

It's been almost a month now, but I am back, they say that Indian stock market is rising and there is very good future for almost all investors but still i could see a lot of people fail and struggle in trading.The basic cause for this failure is not abiding yourself with rules, what ever be the situation you should not forget the basic rules, basic rules are almost the same to almost all markets and in all situations.

When you are investing in market donot enter the market with certainities, think always in terms of probabilities, certainities will never help in share market.

When you want to invest for long run see for the fundamentals of the company and invest but when you want to invest for short term and day trading you should see for the technical analysis .

Never bring your emotions inside the market emotions cannot be strategies and they will never help in your investing.

Never try to go against the market that is not recommended even by the big guns

Keep watching your holding always you just cannot hold a share which is not at all useful to you or going against the probabilities, be ready to gain or be ready come out of the market immediately when you smell danger.

Try to analyse your stay in the market and the business done by you atleast every month and learn the plus and negatives, reviewing your lose, and profit will help you to plan further in the coming month.