If you are like most small investors (and yours truly was not an exception), you probably entered the market with a few thousand Rupees to spare and absolutely zero idea about how the stock market works.
If the first stock you bought did not fall immediately after you bought it – you were lucky rather than smart! You probably sold it after a few days for a meagre profit of a few Rupees – only to see it soar away.
If the first stock you bought started falling right after you bought it – you rued your luck and held on in order to get back your ‘buy’ price. In other words, you became a long-term investor in a losing stock.
Every game has its rules. The stock market is not a game – it is serious business. So, it is all the more important that you learn the basic rules – otherwise those who know the rules will take away all your money.
In a recent article in investopedia.com, investment rules suggested by six of the world’s top investors have been discussed. Read the full article here.