Indian Stock Market

Indian Market Scenario
Indian Stock Market is going from strength to strength.. Its well on the course of moving towards 14500 sensex by March 2007. To make money in indian market or for that case any market, is not very easy particularly for small investors.

Suggestions for Small Investor

For small investor, i have some suggestions which are based on my experience in market...

Invest only in well known stocks - You will say whats new about this.. but then also we make mistakes. A human by nature gets fascinated at idea of making fast money.. but in stock market most of the time you will end up loosing money if you invest in wrong stocks.. So, bottomline is that invest only in known company.. it doesn't mean only large caps but also quality midcaps...

Invest on sharp dips also, if you are determine that the stock is quality one... This is very important point... We buy some good stocks and almost on 80% occassion it gets to lower level after we buy it... Don't lament and sell it hurriedly.. if you are convinced that stock is good one buy more and average...

Have some good large cap stocks as your portfolio stock which you will never sell for quick gains... keep adding some on regular basis...

Apart from your portfolio stocks, invest in quality mid caps... Have some target for all these stocks and sell them as and when your target is achieved.. Keep in mind, profit is only on papers until and unless you sell your stocks and book real profits... This should be your key rule... Sharp corrections have shown that profits can erode in matter of days (or should i say hours)... So, book profit whenever possible and don't bother if stock rises by some more percent... You should remember one thing, its almost impossible that you buy at lowest price and sell at highest... What you can do is book partial profits incase you think stock can rise further..