The golden rules of investing

Source: Rediff Business Desk/ February 08, 2006

The Sensex is on fire, notwithstanding Wednesday’s dip. It’s a bull run like no other witnessed by Indian investors. And investment gurus — like Marc Faber — say this bull run could last for a decade or more!

While it is time to rejoice at the booming Indian economy and the historical journey of the Sensex, the foremost question in the minds of all small investors — like us — is whether it is the right time to buy or sell stocks now.

So what does the layman do in times of a roaring bull market? Are there any rules for you and me to follow while dealing in the stock market? What should you avoid doing? And, more importantly, what should you do?

Of course, there are some golden rules that you must follow. And these have been culled from a variety of sources: writings by investment gurus, articles in newspapers like Business Standard and Web sites like Equitymaster.com, opinions of brokers and analysts and a whole lot of others who have learnt the art of investing the hard way.

Click here for the full story.

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