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Friday, May 1, 2009

Stormy Stock market: some useful ways to win over it (1)

Ups and downs are on in stock market as usual, and especially prices are more fluctuatuing amidst this recession which still looms over the market, which is already under pressure. Those, who are set to invest in this inconvenient market, should keep that point in mind. But, yes, you are the investor, who is taking the risk; you have to get the best fruit possible out of your investment even in this stormy market scenario. Keeping your stand here in mind, I planned to share some tips with you guys for taking care of your invested money in this present stock market.

1. No fear-fear is useless
Stock investment is a long term proceedure, lengthy way of investment. You must be mentally prepared to walk through too many price related ups and downs, and regardless of present market situation, many different and fully unforseen market outcomes you may face at times which no way match the forecasts. There may come scary and staggeringly low price rates, fraustrating conditions and greatly uncertain market phases…..and you have to be ready to take them all. Everybody does, dear. Equity stocks should outperform every other asset class in long run.

2. If can not play, sell up & forget
It is true, that at very recent past, the stock market had had a fine run. A lot of investors have done well. But, its true as well that stock game is a nerve game, and not at all situation we can hold on to it. If at any point (for example, when the rates are extremely fluctuating) you feel that your nerves are failing and you can not take the tension any more, may be you would very much like to do the trade at a more safe mode, and be at safer zone with your investment. Selling away your stocks that you hold may be a worth considering decision at that moment. I would advise: sell up what you have, take home the profit and put your money in a savings account. An expert stock analyser says its totally ok to hold cash for just a certain period of time and sell it off then to get profit in case you have no year long investment plan. And, he says that it is no way mandatory that you have to have a long-term investment planning, if you are not ready. In fact, not all the stocks in market are ideal for longer time period. Selling up some of your stocks stored and putting the profit in a high interest rate account is profitable as well, and makes sense.

I am in a bit hurry today, so that’s all for the day and would get back with other tips on my next post. It is to be continued…….

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