What is the best strategy for buying shares?

In general, most people have the tendency to buy shares upwards - perhaps due to greed. They feel that the price is rising and even ready to "take off" higher. Thus, they must buy more regardless of the fact that they are now buying these shares at a much higher price than they have previously bought.

Such a situation normally ends in losses because of the higher risks involved as the share price can fall suddenly. In the case of a market correction, the investor will then end up "carrying the baby". As such, the best way to buy shares is to buy downwards. (My comments: Do you agree?). But here again, it will take a lot of courage to buy downwards because it always appears that the more you buy, the more you seem to be losing.

Nevertheless, the name of the game is PATIENCE as share prices will eventually rise again - it is just a matter of time.

In short, the trick is, you need lots of money and guts to see you through. And, if you do - you will ultimately reap your profits when the stock market turn bullish again.

Best Strategy:

• Money
• Guts
• Patience
• Confidence

Ref: Making Mistakes in the Stock Market by Wong Yee