| Rigidity of approach may stand in the way of an | | | | better off with the existing strategy, according to |
| investor to make profits. You might have built | | | | the opinion of the broker. When the shares in |
| your portfolio with assiduous efforts, taking into | | | | your portfolio are sluggish and do not show |
| consideration every possible detail, the trends, the | | | | growth, you may become frustrated, but these |
| market mood, the volatility etc. but no formula | | | | are the occasions in which you have to check |
| can give you 100% success. If you earnestly | | | | your emotions and guard yourself. The whims of |
| desire profits, expect some losses as well. You | | | | the share market are strange. The share that did |
| have a goal and you have made the final | | | | not fetch you any profit for a number of years |
| decisions, but you can not bind the share market | | | | may suddenly spurt, and if you sell such shares, |
| with your fixed plans. You need to move with the | | | | your patient wait has gone in vain. |
| market, respect its volatility and take home the | | | | Always remember that you are an investor and |
| profits in the manner in which it is wiling to | | | | not a speculator or a market timer. You need to |
| give-not according to the style that is desired by | | | | have solid ground to change the strategy, like |
| you. | | | | abrupt change in the political scenario, new trade |
| Many investors play it safe by adopting a | | | | policy announcements etc. When you feel it is |
| consistent long-term strategy and hope for the | | | | necessary to change the strategy, do it, without |
| secured financial future. The investments are | | | | being emotionally attached to the particular |
| well-diversified and they make steady purchases | | | | strategy that you have been following, assuming |
| with due regard to the changing mood of the | | | | that you have made some profits out of it. Your |
| market. But this is not the final answer the | | | | aim is to make good profits and not some profits! |
| question of investment. During the Bull Run, it may | | | | Since it may not be possible to change your goals, |
| be a good strategy to be a long-term investor, | | | | changing the strategy to achieve the goals is the |
| but not otherwise. When the market becomes | | | | sensible alternative. When you evolve a strategy |
| volatile and unpredictable, those are the testing | | | | for your portfolio, you always have at the back |
| times for the ingenuity of the investor. One thinks | | | | of your mind that some shares will fare better |
| of changing the strategies, when realizations | | | | than the others. This may be true in normal |
| dawns that ground has become slippery. One | | | | market conditions. But in extraordinary situations, |
| thinks of the alternative course and why not! | | | | like the present depression, when the portfolio as |
| An investor changes the strategies succumbing to | | | | such is greatly affected, an investor has no other |
| emotions, when something sensational happens in | | | | alternative but to follow a new option as per the |
| the market. During market downturn, investors | | | | demands of the time. |
| react in panic, one follows the other and money in | | | | You may suffer immediate loss when you change |
| big quantity is pulled out of equities. Soon the | | | | from one strategy of investment to the other. |
| market rebounds and the investors arrive flocking | | | | This can not be avoided and you need to take |
| again. You can not tender tangible reasons for | | | | the long term view. Sticking to the former |
| such behavior of the investors and why they | | | | strategy may entail more losses. To curtail losses |
| change their strategies without proper reason. | | | | and save major part of the capital should be the |
| Whether one likes it or not, rumor-mongering | | | | objective of the intended change. |
| creates deep impact on the psyche of the | | | | It is better to admit mistakes and change the |
| investors. | | | | strategy than to be adamant about a particular |
| If you are attached to a broker, before changing | | | | option. A good investor needs to be ever on the |
| your investment goals, engage in a thorough | | | | move, may be two steps back backward, to leap |
| discussion with him why you contemplate doing | | | | ten steps forward at an opportune time! You |
| so. You may be proceeding with the intended | | | | may gain a lot by tactical withdrawals! |
| change, without proper reason. You may be | | | | |