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

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Friday, December 21, 2007

volatile market

Normally if a market is volatile it will keep on fluctuating up and down, and if your choices are suffering then dont get panic,and never try to treat it is junk and throw it out, dont do that unless it is visible about the share you are holding is losing in fundamental grounds, if nothing is wrong in the companies fundamental basics there is nothing wrong in holding the stocks for some more time the jump down ward may be because of the volatilism of the market, no share in the whole history had lost its foot all of a sudden.
Dont put your entire money immediately in buying the shares you believe will do well, what ever be the reason behind it for your investment dont put all your entire money in one investment do it periodically , this will save your investment and also reduce the risk. Go for the stocks of those companies that are fundamentally strong and has a good track record and do the investment in those sort of shares periodically.
No Single share can be said that it is strong and good to buy just because the price of the share is increasing in the market,when you locate such share dont run immediately behind those shares and invest indeed do some research and find the background for the rise and the companies compatability and then go for investing.

Never keep on changing your strategy because switching frequently you will lose the ground of your reasoning and chances of going for junk shares are more so stick to your strategy, and the main thing that will help you to increase or help to earn from share market is "Diversify your Investment",keep diversifying your investment so that the risk of losing your investment is less always.