Investment in Mutual Funds, Insurance, Pension Plans, Equities, Personal Finance.
Sunday, 28 February 2010
Tracking the share market daily.
If you are one of those who track the market on daily basis then probably you are not an investor. To be an investor one has to stay invested for a long time of more than five years or may be more. If you have invested in some companies then let those company grow and give them time to deliver results. Fluctuation is a part of share market and so you cannot expect the price to rise immediately after you have purchased a stock. Sitting frequently in front of computer to see your share prices will only result in stress if your share happens to trade low. If you are confident that you have invested in good companies then there is not need to panic even if the market falls drastically. The fall that started in January 2008 saw some good companies falling by as much as 50%. So what do you do in such times? Well as I said earlier, if you have invested in good company then you should buy more and average your cost. But there are many, in fact majority of those who sell and make loses at the time when the market is falling. The same people will start buying at higher levels when the market starts to climb again. The result, investors or maybe I should address them as traders getting trapped and making loses consistently by buying at higher levels and selling at a lower level. If the market starts declining from tomorrow there are very few who would think of buying. Most of the people will panic and try to get out of the market regretting later when market starts to gain.
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