Hi I’m planning to nibble into stocks with this correction and have identified the following. I dont understand the asset allocation…
Can seniors guide me what to avoid among these and what should have higher allocation
thank you so much
Choose the stocks you believe in
Do not invest more than 5% in each large cap and 3% in other stocks
In this fluctuating market, book every raise of 10% - full stock holding. Reenter on dips of 5/10%
Stay away from F&O or stop losses ( may trigger unnecessarily due to high volatility in intra day)
Any time hold 20% cash
Be ready to take up to 20% downside
Use BTST if you see a sharp rise ( buy today sell tomorrow)
NEVER AVERAGE. INSTEAD USE THE SAME AMOUNT IN OTHER STOCK IDEAS.
review investment every year
Good decision to start investing in stocks. I will not recommend or comment on your stock picks as it is important for you to get the feel of what it is to loose/make money, and it is a required initiation/qualification ritual. However my advise is to pick up some books and start reading now. To being with Common Stocks Uncommon Profits, One up on wall street, Little book of value investing and The Thoughtful Investor.
Thank you so much. I missed earlier opportunity to invest in 2009/10… Have been desperate to get this kind of correction…
thanks for the advice once again