How Do I Know if I Should Buy, Sell or Hold Stocks ?

How Do I Know if I Should Buy, Sell or Hold Stocks ? – This is the common query I encounter almost everyday from many of viewers and my clients. Initially I had advised a lot of people to invest in Stock / Equity market , Indeed many of them started investing in equity market almost a year back, now when the market is at very fluctuating level they ask me whether they should buy , Sell or Hold stocks ?

After analyzing a lot I decided to advise the investor who have invested in equity the following tips which they must follow while Investing in Stock Markets

  1. Never Invest all your money in Equity or stock market, the investment ratio should only be 20% of all your saving
  2. Try to buy traded stocks i.e. which are commonly traded on stock markets. The stock market is place of buying and selling for profit, the stock which would be having best buying demand will have highest profit.
  3. Purchase stock and hold for considerable time period , When purchaser  buy, sell or hold, stocks, such a decision should be part of a long-term and focused financial plan like for 5,10,15 years and so on for certain goals like child education, Daughter marriage, house purchase etc.
  4. Never believe on gossips while investing in stocks, the movement of share or stocks are very sensitive depends on many intrinsic information. Before investing and holding the stocks purchaser must analyze the quality and prospect of stocks.
  5. The investment process in stock  for Intra day and delivery must be different.
  6. The list of companies and their stocks must be researched before investing and holding for long period.

Stock markets is beautifully designed for movement of shares. This movement of share makes the market to move up or down hence profit or loss. Someone profit will naturally make other looser. This is quite natural but the decision of investment in profitable stocks is yours.

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