You Buy And Cost Falls, You Sell And Price Rises.
One say’s “I purchased “XYZ Company” at Rs.2200 and instantly right after I bought the stock cost dropped to Rs.2000.” I experience sad. An additional comes using a different version “I sold “XYZ Company” at Rs.2000 and it went as much as Rs.2400 same evening” I produced an imaginary loss of Rs.400 per share.
Solution:
It is possible to purchase much more shares @ Rs.2000 and lessen your overall getting expense. This has to be carried out only if feel within the fundamentals,management and also the upcoming prospects from the organization.
To accomplish this you have to retain money prepared.whatever funds you’ve and desire to invest,split it into two parts. Then keep 50% money aside, only invest with other 50%.So if require to buy much more of any stock when the price falls you’ve ready money.
Also now if you have 200 shares of XYZ Business 100@Rs.2200 and 100@Rs.2000.Then the price goes up to Rs.2400. Promote only 100 of the shares.Then if the cost further shot up, you might have some shares to sell And participate within the rally to create cash.
Following You sold the share and the cost went up. The solutoion to this is by no means market every one of the shares at 1 time.Promote only 50% of one’s shares.So if he price tag goes up later you even now have the other 50% to promote and make profit.
The golden Rule is to first do your personal analysis of the stock just before investing and acquire on suggestions. Also invest only in companies which declare dividends each year. To become certain that you aren’t investing in loss making companies.
Each and every Market expert advices to complete your stock analysis just before investind within the stock marketplace.
But nobody tells you how.
Nicely in my subsequent post I will write about how to do stock anaysis making use of different tools such as economic ratios and by checking the track records with the comapnies you program to invest in.
P.S: In case you are not Indian then replace the Rs. into your own local curreny to comprehend the artilce 
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