Wednesday, 22 October 2008

What should I do in a bull market situation?

As share prices will be rising since speculators are chasing after the shares, the best strategy to adopt is to buy during a correction.

In case the share price should drop after buying, you need to do some averaging.

However, remember to keep on selling once you have profits.

SHARE PRICE -------> Rising --------> Correction or consolidation ===> Buy!

Always buy downwards and buy to average i.e. lowering your cost.

Ref: Making Mistakes in the Stock Market by Wong Yee

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