Monday, August 8, 2011

When to Invest in Stock Market

As a human nature, most people start buying shares in stock market when the market rises and they start selling in panic when market falls. This is a completely wrong perception. No smart investor in the world would do that. Many new investors fail to read the rally in stock market and they miss the opportunity to buy or sell shares. They enter the stock market at the wrong time and end up buying stocks at higher rates. Hence, it is very important in this business to follow the marker rally and invest at the right time at the right price.

When to Invest in Stock Market

When to Buy or Sell Shares in Stok Market



Buy low and Sell high is the business mantra of stock market. Smart investors will always buy on bad news when the share prices fall down and they will sell shares with good news when the prices rise. This is how all investors must think in order to profit from stock market. Even though all investors want to buy at lower rates and sell at higher rates to make profit but most of them miss out opportunities or get panicked.  There are some tried, tested and proven techniques to select good undervalued stocks. Investors must follow these techniques and make profit.

Don’t buy or sell stocks in panic. Don’t go with the crowd. Use you own brain and follow the market news. If the fundamentals and growth chart of a company is good, there is no need to panic on bad news. Good companies will always grow, even though there is some short-term impact of bad market news. You need to go against the crowd. Buy good shares when everyone is selling. Make sure you do proper study and research before investing.

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