There is evidently something wrong somewhere. Either the experts were wrong or your investment decisions went wrong somewhere down the line. However, the funny thing is that nothing is wrong here.
What is wrong is our planning or rather the lack of it. There is a method to deploying funds into the stock market. If you follow this method you just cannot go wrong. Here is a Stock Tip to keep in mind when investing in the equity market.
Remember to keep a fundamental assumption at the back of the mind. Equity investments are assets that will generate the maximum returns over a fairly long period of time. If you trust this, you will not go wrong. Volatility is a part and parcel of investing in the stock market. If you cannot stomach this, then you should not even look at the stock market with out reading the appropriate Online Stock Market Trading tip that matches your criteria.
The next thing to do is to figure out where you are with your finances. Put out your banking and brokerage statements, check your balances, and gather all your fiscal information in one place. After learning what you are, figure out where you want to be. What are your short term and long term goals? If you need money in the short term, a more conservative investment would be appropriate. If you are looking for a long haul, you might decide to take more risks.
Keep in mind that your risk tolerance is a very personal matter, based on your age and your personal saving goals. Your friend may be much more conservative or aggressive than you are. But that does not mean their investment strategy is right for you.
The third thing to do is to check out investments and investment professionals you will do business with. Before buying stocks, checkout the company's financial statements. Obtain and analyze as much information as possible so that it will alert you of any problem a company may have and you know what to expect from your investment. It is important to educate yourself to make sure that the investments match your goals and tolerance for risk. Don't buy anything you don't understand.
The next important thing not to do is put all your eggs in one basket. Distribute your risks in a manner that when the boom time busts, you don't lose anything. Try investing in mutual funds or in fixed income securities and stocks. Do not pick on only one type of investment rather go through a stock tip that is most relevant and applicable to you. The more conservative you are, the less likely you will be to lose.
An added thing to remember is to avoid acting on impulse. An impulse buy, whether it is at the mall or on the stock market, is still an impulse buy. Stick to your plan. Don't buy on a rumor.
