"Planning To Leverage Current Market "- Certain Tips
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    • "Planning to Leverage Current Market "- Certain tips

    Deepak Tyagi

    Aerospace Design
    Ooops...!! If you are investing in the market, understand that a fundamental change has taken place, because the recent experience will stamp its footprint. This is no time to take the market for granted. . No one is talking of any complicated investment matrix. But you need a few personal rules to optimize your effort. Nothing outlandish, really. Here are a few ideas that may be helpful:
    1. Buy carefully
    Now, you must know why you are buying a particular stock at any time. That means you have a basis to justify the investment. If you have a few firm rules here, it means a stock getting into your portfolio sufficiently merits it – it meets some carefully chosen criteria, depending on your investment goals. Put differently, it has to have a strategic fit into your portfolio.
    2. Protect your investment
    It should be obvious now that protecting your investment and gains is as important as finding good stocks. Recent experience has shown how quickly a 400% paper gain on a stock can fizzle off and turn into a 70% loss on investment. Strategies for protecting your investment and the gains that accrue should be a priority.
    And why beat about the bush, when some proven, easy-to-apply systems have been established? We’ve given them before. Now, you should be focusing more on understanding and effectively using these protection strategies.
    3. Be a long-term investor with a trader’s instinct
    Long-term investors buy into companies with a relatively long-term perspective. They expect to hold for some time, so they screen for companies that have current and future value potentials that meet a set target.


    Traders and speculators try to ride price swings and are not too concerned about company value and long-term potentials. The ordinary investor is not a trader. That means you need criteria that enable you select stocks that you can hold for value and ride into their future growth.


    Once, holding was akin to the typical buy-and-hold, where you stayed with the stock, come rain come shine. Typical buy-and-holds won’t even bother what else happens to the stock. There are two flaws there: clear opportunities to optimize investment value by riding price cycles are missed. Also, if you are unlucky to need money at the low price point, you are forced to realise a huge loss.


    Now you must understand that long-term investing still needs a trader’s instinct. You need to watch the trends. Clear signals of major shifts in the market or for particular companies should induce some action. You may need to act to protect your investment value, or to take further advantage of opportunities. So, you must sell when it makes every sense or switch stocks when emerging opportunities dictate so. Don’t just stay married to stocks you buy on a “for-better-for-worse” basis. " HAPPY TRADING GUYS "
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