Should I buy or Sell?

When the market loses 400 points in a single day, what do you do.
You have invested borrowed money or the money meant for your child's education or some money which you had in your bank deposit. Now you are cursing yourself for having entered this market.
Many a middle class people lose money and the rich become more rich. What do I do now?
If you are one of them asking above questions, then it is time you took some lessons in discipline.
The person with discipline and dedication makes money in the market. Both words used have tremendous depth and meaning. I will suggest the previous posts to up date yourself.
First things first.
Sell stocks which you have purchased on the basis of tips. Also sell those one rupee stocks, sell those companies which you are not aware of and cannot research that company.
Simple strategy.
1.Invest regularly. Stock market is the worst place to make fast money for a middle class person.

2.Invest in companies you know. They may appear costly but they will deliver.
Simple test. Name top five companies in the following business.
a. Software
b. Engineering
c. Textiles/Garments
d. Banking
e. Cement
f. Infrastructure
g. Hotels
h. Automobiles/Auto ancillaries.
The list can have any sector which you like. The point is what percentage of your investment is there in these top companies. If you have invested in good companies, there are bright chances that you will make/ recover some money. But if your basket has only one fruit, you are doomed.


3. Diversify among the top companies. Diversification will derisk you.
I have said before, the returns may reduce because of this strategy, but atleast your principle is secure.
10 to 20 percent of your money, which you can risk totally can be invested n good mid cap stocks.

End Note: The markets may go up or down, it always presents earning opportunities. Be smart to capitalize. Greed has killed many a goose.