Friday, October 15, 2010

Smart Investment



It is not so easy to earn money through stock market. There are many things you should know before investment in a stock market. It will help you to earn your money smartly.
Buy at low rate and sell at high price.
You should keep an average to your cost.
Long term investment is more profitable than short term investment.
You should invest some of you amount in a volatile market,
Always have cash on your hand.
Time of crisis is most important time to buy value stock.
These are quite old technique but these techniques have always worked from time to time. Because there are so many things to become successful in a stock market. One has to look many things to become successful.
One should never buy a stock when it is at high point. But many investors make this mistake they buy stock when the market is at high point and when suddenly market dips they loose.
One of the most important this investor should always do is to balance the average the cost of stock. It is advice to trader not to purchase too many stock at one part of time.
If investor is investing in a company whose condition is very bad, investor should always exit immediately.
Long term investment is always done in blue chip companies who always guaranteed some return on your investment.

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