Jun 23, 2010

Lessons for Investors and Traders

Don’t regret that you have not bought many stocks that are rising. Many stocks that are making highs. Mostly for the stocks of companies you don’t know anything about.
Remain contended with your profits.
At the same time don’t lay idle. Act with markets if you want profits. You have got to trade in companies shares that you know well about.
You have got to believe in the power of fundamentals. And then understand the game of volumes.
You also have to get the ‘right’ idea about ‘general conditions’ what is explained by jesse Livermore in his famous book ‘reminiscence of a stock operator’
Never take profits for granted. Don’t think things are easy and you got it your way. Keep your feet on ground.
Some misconceptions and misunderstandings: prevailing amongst investor class.
When a company enters into new venture it is always profitable to it.
When the company launches new product sales will increase.
When the company makes any JV, merger, amalgamation, takeover it is profitable.
When a company splits share or gives bonuses it’s profitable.
When a company makes buy back its profitable.
When a company wins some lawsuit it is profitable.
When a company announces dividend its profitable.
When a company’s share is moved in or out of index on stock exchanges.
When face value is split or increased its profitable.
And such other things.
If economy is growing, every sector and company will benefit.
New sectors and novel technology makes more money.
IPOs are for good and profit of investors.
Brokerage houses and merchant/investment bankers act in the best interest of investors.
TV and other media give un-biased reporting and views.
TV channel or News paper analysts are all genuine.
Everybody earns in a bull market.
Everybody loses in a bear market. 

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