Key to Equity Trading

Remember the following points when investing in the market:

1. Sentiments change overnight as people are emotional.
2. If analysis really worked all the time market would have become very boring. They are interesting because we cannot predict human behavior.
3. When you get information on a stock find out if market already knows it. Know your level of information ladder.
   
4. Life is never fairy may find incompetent people being highly successful. Don’t feel bad, they are reaping the rewards of their past karma,lolz……
5. You cannot get investment opportunities everyday.5-6 of them in a quarter would be great. Patience is always rewarded.
   
6. The law of firm is applicable in walks of life. Control your emotions.
   
7. Do not follow the herd blindly. You never miss the bus in the markets. If you have the money opportunities would always come. Preserve your money and don't forget "Cash is the King".
   
8. Bear markets offer better investment opportunities than bull markets.
   
9. Avoid margin trading. You are only enriching your broker. Ask your margin trading friends how they are treated in the present market situation.
10. Derivatives are good hedging instruments. Unfortunately they are used as speculative instruments. They only enrich the intermediary at the expense of the investor. Avoid them.

The devils would never listen to the scriptures of "TECHNICAL ANLYSTS" isnt it?

Regards
Praveen Kumar
www.laymansfinance.blogspot.com

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