Many members are sending me pms and asking whether they should invest in stocks at the current prices. Though I am bullish on the markets (for next few years) and some wealth compounder stocks, I dont chase the prices. One should keep the list of good shares they want to buy ready and when the market corrects, then they should buy......and buy only if you are convinced about the future of these companies and future of the Indian economy......be mechanical when the price comes to your target level, pull the trigger and buy ,without thinking who is saying what....my strategy is buy sheep (cheap) and sell Deer.
Same holds for selling......few people wait for the stock to go to the Moon......it is fine if they have the conviction for holding it for next 5-6 years...but small retracement and they start giving up their faith on the stock .Otherwise it is best to book profits periodically when you feel that the market is looking stretched and buy again in correction.This way you make some money in trading too...
Smart_trade