Profitable investor must aware of when to buy stocks and when to sell stocks while investing in stock market.Some investors use fundamental ratios to buy stocks and to sell stocks.But fundamental analysis does not provide the exact future performance of the stock.I have listed 3 most important tips for investing in the stock market.
1.Buy the strength and sell the weakness:
In horse race betting every one bets on winning horse.So winner has more probability to win.Loser has more probability to lose.While investing in stock market also gainers gain more losers loss more.This is the simple and powerful lesson one must learn.
2.Big Gap Ups And Gap Downs:
Big gap ups and gap downs happen due to huge sentiment change.So investors must respect big gaps .Buying falling knives and selling raising stars are injuries to wealth.So one must buy big gap ups and sell big gap downs.
3.Entry Exit Of Ace Investors:
Promoters ,Insiders and Ace investors must have great knowledge about the company.They know if their company is cheap or costly,profitable or not profitable and everything.Buying after their entry into a stock and selling after their exit in a stock is also a profitable investing strategy.