If you are long term investor,
Then remember some things:
1) Be ready to judge a scrip fundamentally and first convice yourself to maximum extent before entering in any scrip
2) Do your own research and hone your
researching skills with experience
3) Don`t get swayed away by irrational exuberance and irrational panicks
4) Irrational exuberance gives investors opportunity
to sell (which most of the people use as buying opportunity as prices are rising and will rise more)
5) Irrational pessimism and insecurity forces even quality scrips trade at very low valuations and people sell it in distress……Actually for investors,it is buying opportunity
6) It may or may not always help to go against tide
7) You should be absolutely conviced about the stock you are going to invest
8) Never invest in one go……buy say 25% first….then buy in tranches for a period of time to average out your buying position
9) Read quality books from authers like Benjamin Grahm,Peter Lynch,warren Buffett to understand investment basics..
10) I have seen boom,bust,boom in my investing career and nothing can replace experience……At least we should be able to learn from others` mistake and should not get carried away with irrational sways on screen …..