During a downturn in the stock market, decision to buy or sell are going to be difficult even for the experienced brokers and investors to stay focused.  The daily hectic market changes, and the fear of loss, leave a bad taste at the end of the business hours of the exchange every day. To protect the portfolio by stop loss methods becomes the prime concern for the investor. 

Long term investor worries less, except to watch the market developments with unenthusiastic attitude. Some decline say, up to 10%, will not cause one any worry, for in actual terms, they do not lose anything. So, let the volatile market have its run and stabilize to some extent, before you make fresh investment moves. Any selling decision is improper at this juncture. Historically, good fundamental shares like Pepsi Cola and Cola-cola perform much better in the long run. So, stick to the fundamentals of investments. With all the commotion in the share market, it does not forsake its underlying discipline. The investor needs to understand this.

Knowing fully well that trading in shares is a risky venture, yet thousands of aspiring investors join the existing army of investor everyday. The share market extends a great welcome and recurring co-operation to the one who invests with discipline and imagination. Make self-analysis first and analysis about the shares of the companies in which you are going to repose faith to create the portfolio.

When making the self-analysis, the important factors to be considered are, knowing the risk tolerance, to evaluate the comfort level in tune with the volatility of the market, having a diversified portfolio, no regrets about the temporary (notional) losses when the prices of the shares in your portfolio fall. Review the downturns with proper perspective, without being panicky. Do not make hurried changes in the portfolio. Your strongest enemy when the market behaves in an unpredictable manner is your emotions. Hold them in check. They can reward you with nothing but losses. You have a plan and stick to it and move according to its directions. You aim for the long haul, and therefore sudden moves have no room in your game plan. The future market is impossible to predict, and those claiming to do so for you, will land you in trouble. What happened to your shares, whether loss or gain, may not be repeated in the coming several months.

Before making the investment moves, it is highly advisable for a new entrant, to avail the services of a broker or financial consultant. Though one's own knowledge and intuition will take one to the shore of success, certain basic issues can be got cleared with the help of the broker.

Invest in a company that is run by a good business family. Know the present economic conditions in relation to the segment of the industry that you are interested in. The company run by the best business family may land in trouble due to the impact of world economy on the products being manufactured by them. Rely on your brokers' advice with whom you are tied up. Tips that float in the market should not be paid attention to; they are usually the crafty manipulations of the vested interests.

Calculated risks are part of the investor's life, but maximum care needs to be exercised. You should never forsake the investment discipline that you have cultivated for good reasons. The temptation or probability of putting heavy sums in one company should be nipped in the bud. The stock market provides opportunities; but the sense of timing of investment is your domain. If you grab your chance well in time, you are a winner.

In this internet age, many stock systems and trading software are doing rounds in the market promising you great profits. But always remember, any software is only a pointer to the success; it does not guarantee success as the decision to buy or sell still comes from you. In the final stage when you are ready to invest in shares, do some preliminary paper trading. The results will boost your confidence to do the actual trade.

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