Leave a comment

A few words for peple who lost money.

Many friends told me their stories of how they lost money and how painful it is to them.
Here are a few pointers one should look for.

  1. Stocks go up and they go down also.
  2. Stocks can go up, higher than we think.
  3. Stocks can go down, deeper than we think.
  4. Points 2 and 3 are right very often.
  1. When you listen to “common people”
    saying great things for economy, please try to turn fearful and dont
    join the crowd whole heartedly.
  2. When you listen to “common people” saying depressive things for economy again think ahead and purchase shares.
  3. When all u see around is hope and hype, run.
  1. People who purchase shares since it has gone up are innocent lambs.
  2. People who try to trade shares without knowing risk are still more innocent.
  3. Lambs are systematically slaughtered for meat and wool.
  1. Its far more difficult making money trading stocks than what everyone thinks.
  2. In a trade, either you or the person on other side is right. Are you sure you know enough?
  3. When an analyst says “mkt would
    come up” ask him will he try to sell of this shares as it comes up? And
    if everyone wants the same thing would it happen?
  1. When a friend gives you a tip, do you ask him enough questions? or just take his tips since you want to “do something”?
  2. Has your friend demonstrated over time that he can make good
    decisions? or does he just says fancy things and shift the pain on govt
    and news?
  3. Does you friend makes you “think” or does he tries to make you “feel”.??

Only people who can think unemotionally and wait for opportunity
with Eyes as sharp as Eagle can make money in long term. Rest would
give their helping hand to make the focused guys get richer.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: