Engineer's Finance

I got this following Rules in my mail. I just thought of sharing it with you…

1. The first and most important rule is – in bull markets, one is supposed to be long. This may sound obvious, but how many of us have sold the first rally in every bull market, saying that the market has moved too far, too fast. I have before, and I suspect I’ll do it again at some point in the future. Thus, we’ve not enjoyed the profits that should have accrued to us for our initial bullish outlook, but have actually lost money while being short. In a bull market, one can only be long or on the sidelines. Remember, not having a position is a position.

2. Buy that which is showing strength – sell that which is showing weakness. The public continues to buy when prices have fallen. The professional buys because prices have rallied. This difference may not sound logical, but buying strength works. The rule of survival is not to “buy low, sell high”, but to “buy higher and sell higher”. Furthermore, when comparing various stocks within a group, buy only the strongest and sell the weakest. Continue reading →

Have you been waiting for long to start something? Do you keep postponing things? Are you just wondering how others are progressing and you are still far behind? What is that you are waiting for? What is stopping you to start? What is it so important that you have not figured it out to start it? Most of us are just waiting for the D-Day.

D-Day is a term often used in military parlance to denote the day on which a combat attack or operation is to be initiated. We can really do whatever we want to do but still we don’t. I have seen many friends of mine interested in investing and getting into the stock market but they don’t really get into it because of the fear. Nothing really stops them from getting into stock market. Continue reading →