Saturday, May 2, 2009

why 80% of investors lose money in stock market?

I guess this is how most of the 80% investors/traders react to stock market. They buy high and sell low. Bravo!!!

In my humble opinion, one of the way to gain in stock market is to buy stocks when everyone is avoiding it and sell the stocks when everyone is fighting hard for it. It is really a simple strategy.

When people shout at you for buying stocks and you are a lonely investor----BUY signal.
When all uncles and aunties are putting their hard-earned money into stock market and coffee shops are filled with stock-market related chats------SELL signal

The right thing to do is to buy low and sell high. Does it sound easy? I don't know.

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