No I am not talking about picking up the pieces when a glass breaks at home -- but in the Stock Market!
- let me explain.
The Stock Market does not work logically. It is a very illogical, emotional animal - Highly swayed by daily news and reacts to extremes- and we need to use that to our advantage.
A good company with sound fundamentals can one day break 10% on rumours only to come back up the next day when rumours have been clarified.
There are many examples to this--
- a good decent stock like ICICI bank broke quite a bit when there were rumours that it had stopped disbursing money in the recent financial turmoil.
- The breakdown of Tata Motors when JLR was found to have issues ( Tata motors is now back to its highs -some 400% up this year.)
so here is the Strategy--- Make use of these one off breaks and grab the opportunity to take the choicest Stocks.
This is one strategy I am going to be very carefully using in 2010.
Happy Investing.
Posts
Simple and helpful are the two words coming to my mind. Alongwith the education please also provide guidance.
ReplyDeleteVandana--- one needs to understand which are the shares which are really good... and then track those shares on a daily basis. when these shares drop sharply-- grab it with both hands :)
ReplyDeleteyou can also look for broker recommendations on certain stocks which talk about accumulate rating on certain stocks.