You get and price falls,you promote and price rises.
SEnuke: Ready for action
One say's \I bought \XYZ Company\ at Rs.2200 and just after I bought the stock price dropped to Rs.2000.\ I'm sad. Yet another comes with a different version \I bought \XYZ Company\ at Rs.2000 and it went up to Rs.2400 same evening\ I made an imaginary lack of Rs.400 per share.
Solution:
You can buy more shares @ Rs.2000 and reduce your overall buying price. It has to be done only if rely on the fundamentals,management and the future prospects of the organization.
To do this you need to hold money ready.whatever money you've and desire to invest,split it into two parts. Then hold 50% cash away, just if need certainly to buy more of any stock when the price drops you've ready cash spend with other 50%.So. If you believe anything at all, you will maybe claim to discover about http://markets.financialcontent.com/dailypennyalerts/news/read/37681131.
Also now when you yourself have 200 shares of XYZ Company 100@Rs.2200 and 100@Rs.2000.Then the cost goes up to Rs.2400. Sell only 100 of the shares.Then if the price more shot up, you participate in the rally to make money And have some shares to sell.
Then You sold the share and the purchase price went up. Learn further on this partner essay - Hit this link: http://markets.financialcontent.com/dowtheoryletters/news/read/37681131. The solutoion to that is never sell all of the stocks at one time.Sell only 50% of one's shares.So if he price goes up later you still have the other 50% to make and sell profit.
The Rule would be to first do your personal analysis of the investment before committing and get on tips. Also invest only in dividends are declared by companies which every year. To make sure that you're not buying loss making businesses.
Every Market expert techniques to accomplish your stock research before investind in the stock market.
But nobody tells how to you.
Well in my next report I'll write about how to do investment anaysis using various tools such as financial ratios and by checking the track records of the comapnies you intend to purchase.
P.S: If you should be not Indian then replace the Rs. In to your own local curreny to know the artilce :).
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