Saturday, December 11, 2010

TIME FOR MIDCAP SHOPPING

THIS IS THE TIME FOR SMALL INVESTORS 
FOR MIDCAP SHOPPING
Stock market basically consists of small investors, for the small investors, by the small investors. Others market participants like FII’S, DII’S, MUTUAL FUNDS, HNI’S, OPRATORS, HEDGE FUNDS provide spice to the stock market. Truly speaking small retail investors are the backbone of a healthy stock market. Yet the most ignored are the small investors. Most of the rules of stock market are Anti-small investors. Small investors are the easiest target for the stock market manipulators again and again. In this recent meltdown small investors suffered the most for no faults of their own.
It‘s the high time that small investors should rise to capture their rightful place in the investing world. The 1st thing they should do to correct their trading strategy, upgrade their trading resources, be adaptive in nature for a profitable strategy and learn quickly from the mistakes.
The 3 most important basic things of market are:
Booking profits, protecting capital and limiting losses, but in reverse order. Well disciplined investment approach works wonders in all market conditions. Follow certain simple and basic rules while trading.
Use trailing stop losses. Keep the price target or stop changing as per the market conditions. Online people instead of putting stop use stock alerts or simply put stop on say 1 share to know the stop trigger.
Most important of all In spite of all these precautions if the trade goes wrong just close the call and forget. Never ever try to repair a wrong trade. It is not a shoe. It is a share. Well you may curse me on this, how can I forget my hard earned money?
Well my dear investors do not waste more of your precious resources on the door which has already been closed rather look for the doors that is about to open.
In the recent panic meltdown all midcaps irrespective of their caste, creed or color beaten down with the same stick. So this is the time to separate men from boys to pick your favorite hidden gems at throw away prices. We have selected at least 4 hidden gems to buy tomorrow. This is the high time to re look at your portfolio, re assess each stock potential and discard the rotten eggs to make some space for the new ones.
HAPPY TRADING.

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