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Message: <blockquote data-quote="bundy123" data-source="post: 9668985" data-attributes="member: 97713">Stock market tips: MUST do & must NOT doWhat you must NOT do  1. Do not panic The market is usually volatile. Take this fact as truth and avoid panic.  If the prices of your shares have plummeted, there is no reason to  want to get rid of them in a hurry. Stay invested if nothing fundamental  about your company has changed.  2. Don't make huge investments When the market dips, go ahead and buy some stocks. But don't invest huge amounts. Pick up the shares in stages.  When the market dips --buy them. When the market dips again, you can pick up some more. Keep buying the shares periodically.  Everyone knows that they should buy when the market has reached its  lowest and sell the shares when the market peaks. But the fact remains,  no one can time the market.  It is impossible for an individual to state when the share price has  reached rock bottom. Instead, buy shares over a period of time; this  way, you will average your costs.  Pick a few stocks and invest in them gradually.  3. Don't chase performance A stock does not become a good buy simply because its price has been  rising phenomenally. Once investors start selling, the price will drop  drastically. 4. Don't ignore expenses  When you buy and sell shares, you will have to pay a brokerage fee  and a Securities Transaction Tax. This could nip into your profits  specially if you are selling for small gains  What you MUST do 1. Get rid of the junk Any shares you bought but no longer want to keep? If they are showing  a profit, you could consider selling them. Even if they are not going  to give you a substantial profit, it is time to dump them and utilise  the money elsewhere if you no longer believe in them.  2. Diversify Don't just buy stocks in one sector. Make sure you are invested in stocks of various sectors.  Also, when you look at your total equity investments, don't just look at stocks. Look at equity funds as well.  3. Believe in your investment  Don't invest in shares based on a tip, no matter who gives it to you.  Tread cautiously. Invest in stocks you truly believe in. Look at the  fundamentals. Analyse the company and ask yourself if you want to be  part of it.  4. Stick to your strategy If you decided you only want 60% of all your investments in equity,  don't over-exceed that .This will help you limit the losses and protect  your capital.~| Co - Admin Of SMICE [Share Market Investors Club @ EK] |~</blockquote>

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