Wednesday, 29 February 2012

Money Begets Money - No Family Planning Here

Most of the retail investors who have one of the following feelings must know the remedy nearby.

1. Now Market is low. If I invest now i will definitely get back several times more within 2 year. But all my money are in the market.

Remedy: Whenever you invest, keep 30 per cent in reserve for bottom-fishing.

2. I bought the shares only as long term investment. But last week or month I sold it. Now the same share is rising up and up before my eyes. I can't endure it.

Remedy: Good stocks are not prodigal sons. Don't worry, they will return home robustly richly. Fix a target date or target amount for selling until which never think of selling unless there is a bad news about it.

3. Everybody bought and I also did the same.... but now after my purchase it is coming down continuously. Oh my god! I'm lost. Or Oh my god I should have sold yesterday or last week itself. Now the ball is out of my pocket.

Remedy: Enter the market when everybody exits. Exit the market when everybody enters. It means: Buy when there are most sellers, and sell when there are most buyers.

4. All my shares are in long term investment. Now I have to simply watch all ups and down without any chance to play or participate.

Remedy: Whenever you invest allot 1o percent for short term investment, that too in potential shares in low price. Be active and don t touch the systematic long term investment.

5. Many technical analysts and many recommendations! I am totally confused what to buy and when to sell.

Remedy: Be a thoughtful role model and not a blind follower. Do self study and rise to the great position of wisely recommending to yourself, your own thirsty soul.

6. I have urgent expenses. I have to sell my well nurtured shares. No other go! Why destiny plays game with me when I'm having a dinner with my Fortune?

Remedy: Divide your cash, whether profit or savings or any other income, into several headings one of which must be for your unexpected expenses (at least fifteen percentage). Otherwise your bright sky will be clouded with these expenses.

7. Out of fear or sudden impulses, I sold all my worthy shares! I have pricked my eyes with my own hands. Why all this nonsense?

Remedy: If you realize immediately, re buy the same shares even with little loss that is minimum punishment for your emotions. Do meditation daily and keep your mind calm to take wise decisions - that
is the permanent remedy for your emotional errors that may sometimes bring huge losses. Wish you Good luck as well as Deep Thinking.



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