First of all follow some To-Do list-
- Don’t invest when Sensex is above 20,000 level. (Applicable for the next 1-2 months only)
- Be greedy to invest in stocks when Sensex falls below 19,000 level. (Applicable for the next 1-2 months only)
Let me tell you that most TV-analyst will exactly tell the opposite. Follow CNBC or ET Now or any financial channels, when market falls all those analyst express their highly negative view on the market and avoid investors to enter. Those same people turns highly optimistic when market is on rise and instruct investors to enter in stocks. Latest example,just 1 month back during August,2013 while Sensex crashed around 2,000 points within few days,those “TV-analyst” regularly used to say,”Market will fall more,economy will deteriorate further – don’t invest”. Just after 10 days of such comments,market takes a U-turn,gained around 10% within few days.Now,those same people are advising investors to enter the market!!!Due to such nasty practice several small investors are trapped to buy stocks at higher level.Moreover many of them book loss at lower level. The realty is Company’s fundamental never change in such short duration.Only stock price over-reacts in the both direction.As an investor you should take the opportunity of such wild swing. Analyst,those who always predict short-term market movement, are always ready to confuse you. Don’t listen to them,don’t bother about where the market is heading in the coming 2-3 month. Concentrate on particular stock,follow that Company and adopt the best investment strategy which I am going to mention.