Many
friends among our investors go by following crowd behavior. The crowd
behaves strangely, most of the time. When the market is up, they buy and
when the market is down they sell. Generally, this should be the
opposite.After a long time, this morning, I went to see the manager of my brokerage and also handed over my payment-check personally, after a long gap. I had bought some shares, yesterday.
For a long time, I was also an emotional investor and was busy buying in green, but now I learned a few tricks loosing quite handsomely and have started buying in red, most of the time.
My personal experience has, until now, justified that buying in RED and selling in GREEN are beneficial acts. Buying in RED needs courage (going against fear) and selling in GREEN also needs courage (going against greed).
If we could develop some habits that helps us to take calculated risks, certainly that will assist us to graduate as a professional in the business of investment from an amateur.
- Mr. Rajesh Sharma
