Stock Investment - Mantra

Once upon a time, some villagers took shelter in a cave at night, and saw what looked like a heap of rocks. Their king said, "Those who take the rocks will live to regret it, and those who won't, will regret it too!". While the inquisitive ones picked up some, the more practical ones didn't, thinking of the weight it would add to their luggage. The next morning, it was discovered that the rocks were in fact precious stones. The regret, of course was inevitable. Those who didn't take any, regretted their decision and those who did, wished they had picked some more. This tale is probably the best analogy that comes closest to explaining stock market! Those who are in it have certain regrets, and those who aren't regret it too. But if you believe in your instincts and are comfortable enough to make a living, then why not take a dip into the 'big, bad world' of the stock markets?

Golden Nuggets

1. One should, as far as possible trade in active stocks only. Resist tempting rumours about penny stocks.
   
2. Do not put all your eggs in one basket. Try to spead risk across sectors and scrips.
   
3. Remember in Stock Markets, no price is too low and no price is too high!
   
4. Use stop loss or other hedging techniques to avoid excessive losses in trading.
   
5. Remember the golden words of Warren Buffet - 'Do not invest in businesses you do not understand'

Source:http://agroy.com/