With the extended selloff in China shares & tumbling of oil prices, the stock market made its ripples to many. Some check their portfolios, others are looking to buy bluechips on the cheap for long term, while others are looking to sell what's leftover in their portfolio, some are looking to do a quick punt on penny stocks, another may be looking to short-sell the market, and maybe another decided to sell the stocks with poor PE and switch to stocks with low PE....and the list goes on. With so many differing thoughts out there, the market is bound to be volatile.
So if you are one who is looking at the markets, do keep these principles in mind:
* Certainly there are opportunities. Keep to small, manageable trade sizes.
* Stagger your trades. Save your bullets!
* Stick to fundamentally strong stocks that pay dividends.
* Refrain from speculating or punting.
* Forget about contra-trading. It gets no-where.
* Buy with an intention to pick up if the stock does not go in your desired direction.
* Remove the "I just need to make it big one time" mentality. The consequences are even bigger if you made a big wrong call.
* Diversify your risks & be patient.
* Predefine your risks. Believe without a shred of doubt that anything can happen in the stock market.
There is a current promotion of $10 Brokerage for Smaller Board Lot Sizes. This makes bluechips with high share prices more accessible to us today.
Take care and trade with caution!
