INVESTMENT

Although time works against an Investor in many ways , it can be a very powerful ally when money is put to work in ways that generate high, compounded returns over a long period.. But precisely because of the magic of compound interest , the value of time is great and so the cost of lost time can be staggering . Understanding the natural inertia that disguises itself as patience should have great impact, that investors learn to become less patient with UNDER PERFORMING investments.

Compound Interest::

The following table is worked on the basis of what they call is" Rule of 72"

The above table indicates the big damage that occurs when the Investments performance falls below breakeven.

Hence in present circumstances an Investor may choose to put his/her money in stocks. But stocks are high risk investments , whether one is fresh or experienced. This is so because of various psychological factors playing in the mind of the investors. The best solution could be to Purchase a sound, reputed stock at it's technical low. Now the major decision one has to make is when to sell the above stock to realize a sizable profit. In stock investments , it is when you sell that counts.

TIPS FOR SELLING AT THE RIGHT MOMENT::

Sell if the news cannot get any better.

Sell if things did not go as planned.

Sell when Broker's advice goes from buy to hold

Sell if company fundamentals are getting sick.

Sell on the rebound in the aftermath of bad news.

Sell when expected news is delayed.

Sell when the stock reaches the target.

Sell on unsustainable upward price spike on big volumes.

Sell when portfolio shows all gain.

Sell if a stock is lazy money and likely to stay that way.

Sell with stop loss order. But never remove or lower it.

Sell after gloating or counting the chips.

Sell rather than hope against hope for a maybe bail out.

Sell and step aside on personal loosing streak

If an Investor sells stocks in a disciplined manner using the signals above ,he is likely to end up with good deal of CASH before the market moves into a BEAR cycle.

Wishes for a good show.