Saturday 19 May 2012

SELL IS THE WORD WHEN MARKET IS IRRATIONALLY ON A HIGH


SELL IS THE WORD WHEN MARKET IS IRRATIONALLY ON A HIGH


1.Irrational exuberance:
The market generally over-reacts to news flow or any unexpected events. When the markets gets heated up and moves beyond its fair value, the ideal decision is to sell.


2.Avoid herd mentality:
It is easy to accept the wisdom of the herd while the fact is that successful investing requires us to stand firm against the herd and take rational decision. The best way for individual investors is to invest in an interpersonal context when one can justify his actions.

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