the demand of many friends, we are explaining the style of investing in
the stocks, we recommend for best possible profit. Those who are starting
new investments in the equity stocks or those who are looking to invest
onwards, they should be buying the stocks and selling them at right
Generally, it happens that we buy a scrip and it goes down after that or sometimes we sell the stock and next day it goes up substantially which makes us feel guilty for not choosing the right time.
So in order to avoid these situations we should follow some rules while investing :
RULE 1 : Buy only a part of stock at recommended price, and further if stock comes down by 5-20%, buy next part etc. (Say recommended price is 100, buy 40 units @100, if it comes down to 90 buy 60 units more and so on.). It will average your price pretty well.
RULE 2 : Don’t Panic with intraday fall of the stocks. For a long term stock, intraday moves are just noises not a trend.
RULE 3 : While selling the stock, don’t look for full profit at once, when stock rises 10-15% from the buy price book some profit, further when next 10-15% is there sell next part of the stock and so on. Try to sell the biggest part first to ensure no losses.
NOTE : Before investing in any stock set a limit for one stock. Invest Rs. 3000 – 4000 per stock only.
If you have any queries , please comment here..