As the market has reached an all time high, it calls for cautious approach as well as keeping an eye on the overall psychology of the market moves.
Firstly, one should stay away from investing in the stocks that are overvalued. Investment for longer periods must be made after verifying that the pricing of the company or stock is valid being backed by solid accounting.
Secondly, it is strongly advised that your short-term trading opportunities must have strict stop loss. If the trade turns into a loss, it is imperative you get out at the pre-set stop loss or whatever point you had decided as your exit point before entering the trade.
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Thirdly, when the short-term investments of retail investors are in loss they turn them into long-terms investments. And, this must be avoided in such a market scenario. It will not help you in creating wealth.
Fourthly, investing for long-term period needs to be done only after examining the fundamentals of the company. After doing proper analysis of the company, you would be able to grasp real status and will be able to decide whether the company is poised for growth in the future.
Disclaimer: The views and investment tips expressed by investment expert on Bussinessfab.com are his own and not that of the website or its management. Bussinessfab.com advises users to consult a certified investment advisor before taking any investment decision.
