Market is tanking for a while.
Here are few tips that will help you ride out well.
1. Bear Markets don’t last forever.
2. A cheap stock can get cheaper. If you understand business and have conviction, buy more of it when it is cheaper.
3. When you’re a long term investor, time is on your side. You can simply avoid checking your portfolio every day.
4. When you panic sell, you sell cheap.
5. Invest in red to enjoy the green.
6. People who have succeeded in stock market went thru thrill, defeat, periodic losses, setbacks and unexpected events.Though they hanged in there and thrived when markets flourished.
7. Not all stocks will make you money. 6 out of 10 stocks making money for you is an achievement of its own over a long period of time.
8. Stocks are highly unpredictable in short term and highly predictable in 10-20 years time frame. Be prepared for unpredictable short term moves.
9. Ability to ignore general public panic will help you go a long way into stock market investing.
10. It’s easy to panic in this volatile business.
Stay calm, patient and stay on the course with your investments as long as their business prospects are strong.
Happy Investing!
