Everyone indulged in trading will be aware of this basic rule of playing the stock market: buy low and sell high. Ah! if only it were that simple, ain't it?
Well, as of now the market is at low ebb and a lot of blue chip scrips are also at low levels (some of them indeed at lifetime low). This could well be the time for you to pick up stocks (and how many of you removed your sandals to throw at me?....read further before doing that......), as a long-term investor and then step back to enable your portfolio to develop.
So said, make sure you have some knowledge about the sector and the industry behind every scrip you are investing. Don't assume that Blue chips mean that they are not prone to crashes and tumbles. They are as good as any other scrips and prone to fall downs. But what you probably need to ascertain is whether the company has a strong place within its sector or not and check out its prospect for growth and how the leadership within the company is (after Enron and Satyam's fiasco you guys ought to check this) and how and if it had pulled itself from turbulent weather situations in the past.
A firm's resilience is quite an important factor to consider so at the current market trends when your risk factor is not that great, start researching and go for it!
Happy trading!
Monday, January 19, 2009
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1 comment:
It is so difficult to convince people to buy stocks at low price!
But people buy when the markets are at peak. What a strategy (read tragedy).
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