Guys, here are the last 5 Dos and Donts of Smart Investing !!

# 6 If there is still adequate liquidity for the market..Don’t fight the tape..When liquidity looks scarce which is usually near market tops, do fight the tape..Waiting for a possible 10% more gain isn’t worth a possible pullback of 30 or more per cent..

# 7 Dont over analyze stocks..When that happens you are usually going into so much obscureness of variables,the market wouldn’t pick it up anyway to give it another direction..Usually only 4-5 variables at the most will impact a stock and most of them are easily identified in the stock with just a little study..

# 8 Do very little momentum trading if you are an individual small investor….Here’s why..The big hedge funds will bid prices up relatively fast and sell off fast making your bids and sells pushed much higher and many times not receiving your orders and having to place them much higher on the bids and lower on the sells..Sometimes it becomes a crowded trade where the bulls and bears come to a head and it can go into any direction fast without much certainty..This can cause great losses..Especially when you couldnt get your bids and sells where you wanted it to be..Also there is a higher risk of a investment not being as safe as undiscovered gems..Remember that..

# 9 Have an exit strategy on your stocks…I had about a 4th investment on a stock in the fall last year..The stock already spiralled down where I bought it at 37 a share..I knew in an owners earnings with just 9% growth at its core value without growth spurts they achieve on acquisition, the stock was worth 49..I double down at 23 in March and sold eventually at 49..Don’t be a price taker if a stock has great fundamentals and is undervalued…I refused to accept 20 a share was going to last and it didn’t..

# 10 Don’t let nervousness engulf you when picking stocks..I have many times not added positions to existing stocks during market negativity and fear and when I have done this more often than not, my stocks surge more without adding to it..

Remember,although you should have a bucket of small cap stocks in my opinion as your core investments, some larger caps can be added to the core especially one with juicy year in and year out rising dividend stocks bought after great market rises ..

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