| How to invest in shares on longterm basis(refer to my | | | | shares whem the market is going down, ignoring even |
| previous article) | | | | the fact that it is available at the BUYABLE PRICE |
| Since it is your money that your are going to invest | | | | arrived by them(refer mu previous article). Why is this? |
| and the fruits of the investment is for your later life as | | | | Permit me to say that it is sheer greed. Always set |
| well as for your family members, so take double care | | | | your target BUY price and SELL price and bo by that, |
| in judging the shares that you select to invest. Dont go | | | | in all circumstances. |
| by the trend of the market. Market trends ore only for | | | | When you are not having a target BUY price and |
| short term, in which vested intrested persons will surely | | | | SELL price for your share, your are misguided by the |
| have a hand in the unusual and unrelated movement | | | | downward trend of the market and you always miss |
| of price and quantity of shares. It could be a reder | | | | the oppurtunity to buy at your BUY price and sell at |
| aquiring that particular share or someone having a | | | | your SELL price.Human nature is that people wait and |
| insider information might be doing the damage. It is your | | | | want the market to go down furthur, when it is |
| money, so avoid such kind of shares from your | | | | downtrend and go up furthur, when it is uptrend. but |
| perview to invest. Also never attempt to invest all your | | | | the market will not have its journey ONE WAY only, it |
| cash reserves in one particular share, though you have | | | | has to and will always turn around to continue its |
| selected it after making a detailed study of that share, | | | | jorney the other way, till it is made once again to |
| since your judgement will be based on the future | | | | reverse its journey. So, when you are sure about your |
| performance of the share. future is not that easy to | | | | target BUY price and SELL price, you will always be |
| predict. So invest only about 30persent of your cash | | | | sure to GET IN and GET OUT of that journey without |
| reserves in shares, 40 persent in immoveable assets | | | | any loss for you. |
| or bullion and the remaining in other debt instruments. | | | | Do not also go by any advice bu the broker, since he |
| Also dony jump into the wagon to buy a perticular | | | | will be compelled more by the commission he earns |
| share at any price(refer my previous article) | | | | rather than the performance of the share. Similary |
| When you want to buy a particular share and by | | | | many and most of the shares announced as IPOs is |
| chance your are short of money to buy, let it go, and | | | | always invariable introduced when the marketis in bull |
| drop your idea, since the cycle pf up and down will | | | | phase. We have seen cancellation of many IPOs |
| come and you can take your chance at the next | | | | when the market turns bearish.Make your judgement, |
| oppurtunity. NEVER borrow to make investment in | | | | when even financial instutions back any particular IPO, |
| shares, wharever the merit of the share. | | | | they have their own resons for it. |
| Also keep track of the price to earning ratio of all your | | | | So, he sure way to invest in shares is to learn the |
| shares and that of the index. When the index price to | | | | fundamentels, detailed study of that particular industry, |
| earning ratio crosses 20 be watchfull and when above | | | | choose the company as per its value(refer ny |
| 23 encash your investments. History waens us of the | | | | previous article) and be bold to actaccording to your |
| trouble whenever the index's price to earning ratio is | | | | judgement. So invest in fundamently good company, |
| above 23. | | | | with good track record, and also try to buy (if your |
| Almost majority of investors go by trend ie when the | | | | cash reserves permit) during downtrend, so as to bring |
| market is in a bull run they want to jump in and benefit, | | | | down your average cost, by which you will be turning |
| which will put you in trouble. No speculator has made | | | | the trend to your advantage, rather than sulking atit. |
| honourable money from the market. Stoch market | | | | BR PREPARED FOR THE OPPURTUNITY, IF |
| histroy has lot of instances of people who had indulged | | | | MISSED, IT WILL TAKE ITS OWN SWEET TIME TO |
| so and had badly reminded about the perils of such | | | | RETURN. |
| activity. People always invariably hesitate to buy the | | | | |