When your local pan wala starts to talk about stocks, it is the right time to take exits on your investments.
It is easier said than done. Such warnings come before a big collapse. Identifying such signals by a layman is next to impossible, unless you have years of experienc
e in the markets. On a regular basis stocks can be bought and sold based on the company’s performance, which happens gradually. One best way to identify profit booking exits is when the company begins
to slow down on its growth.
For an amateur, if he had taken exit and after seeing the stock moving up. He will decide to hold on in his next position, which may or may not do the same pattern. Success in stock investing is purely psychological. Anyone can buy and sell stocks, but buying and selling at the right time and how much to buy, all these determine the success.