# 1: Buy & hold at your own RISK
The days of buying a stock or fund and expecting to hold it for ever is over & hazardous to your wealth. Now, we are in a secular bear market. Does this mean you have to become a day trader?
No, but you should monitor your holdings and be prepared to sell losers and buy into big trends.
# 2: Diversification won't protect You
Almost no sector or asset class was immune from the carnage in bear phase. Warren Buffett had said "Diversification is protection against ignorance" but does not result in protection of your wealth.
# 3: Low P/E does not equal Value
Many adherents to fundamental analysis seeking stocks with below-average P/E multiples & price-to-book values, proved to be traps during the financial crisis (in USA etc) and keep 'languishing' post recovery.
# 4: Taxes are a Key investing Strategy
Taxes make a huge difference in what counts most after tax return on your investment. Take advantage of the low short-term gains & nil long-term gains and tax-loss harvesting as may be advised by your tax strategists.
# 5: Learn to Profit from Volatility
Volatility is not going away. Turn volatility into profits: use wild,seemingly irrational moves as buying or selling opportunities.
# 6: Income investing is not for Olds
Studies show that long-term, dividend-payers outperform non-dividend-payers & jump in the dividend bandwagon
# 7: Invest to meet Goals, not to beat Indexes
There is a lot of sense in focusing on one's specific income and capital needs rather than beating an index.
If you like to sleep at night, forget about margin trading and keep a healthy portion of your holdings in either CASH the king or high-rated Liquid bond
# 8: Mine your Networks for Ideas
Use your Networks to reach stock ideas & research in forums like 'moneycontrol' message boards for your benefits.
# 9: Piggyback Smarter Investors
There is no shame in copying the moves of better investors or market gurus and keep up dated by checking moves of smart money players through disclosures in webworld, and
# 10: Know your Sell Rules before You Buy
It matters when you sell as such decide on the specific conditions under which you would sell rather than either selling in a panic or sitting on your losses too long.
The days of buying a stock or fund and expecting to hold it for ever is over & hazardous to your wealth. Now, we are in a secular bear market. Does this mean you have to become a day trader?
No, but you should monitor your holdings and be prepared to sell losers and buy into big trends.
# 2: Diversification won't protect You
Almost no sector or asset class was immune from the carnage in bear phase. Warren Buffett had said "Diversification is protection against ignorance" but does not result in protection of your wealth.
# 3: Low P/E does not equal Value
Many adherents to fundamental analysis seeking stocks with below-average P/E multiples & price-to-book values, proved to be traps during the financial crisis (in USA etc) and keep 'languishing' post recovery.
# 4: Taxes are a Key investing Strategy
Taxes make a huge difference in what counts most after tax return on your investment. Take advantage of the low short-term gains & nil long-term gains and tax-loss harvesting as may be advised by your tax strategists.
# 5: Learn to Profit from Volatility
Volatility is not going away. Turn volatility into profits: use wild,seemingly irrational moves as buying or selling opportunities.
# 6: Income investing is not for Olds
Studies show that long-term, dividend-payers outperform non-dividend-payers & jump in the dividend bandwagon
# 7: Invest to meet Goals, not to beat Indexes
There is a lot of sense in focusing on one's specific income and capital needs rather than beating an index.
If you like to sleep at night, forget about margin trading and keep a healthy portion of your holdings in either CASH the king or high-rated Liquid bond
# 8: Mine your Networks for Ideas
Use your Networks to reach stock ideas & research in forums like 'moneycontrol' message boards for your benefits.
# 9: Piggyback Smarter Investors
There is no shame in copying the moves of better investors or market gurus and keep up dated by checking moves of smart money players through disclosures in webworld, and
# 10: Know your Sell Rules before You Buy
It matters when you sell as such decide on the specific conditions under which you would sell rather than either selling in a panic or sitting on your losses too long.
