A blog of our college gang that we have often referred to as the Matunga Fishing Club

Wednesday, May 28, 2008

The stock market survival guide - III

Take your own decision.

As a beginner, once you have set aside an amount for investment, the simplest thing is to ask for experienced investors for tips. Its ok to ask for such tips, but the final investment decision should be yours. You should do your own research on the stock and decide the amount and timeframe of investment. After all its your own money thats getting invested. The person who gave you the tip won't compensate you if the investment goes bust.

Another point to bear in mind is to not fall for tips of companies who's daily trading volumes are very low. Those may be penny stocks whose price movements are huge. Such stocks if picked at right time might bring in huge returns. However these are exactly the kind where you might loose all money invested.

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