Not only the small investors but also institutional investor has the challenge to find the right opportunity to invest in stock market and at right time (To enter/exit). Generally investor are happy to make heavy gains during rally but with agreed doesn't book profit but on other hand when market scenario get reverse they are scared faster and sell out the holding even at loss.
In short, investing in equities can be a difficult proposition for retail investors. However, equity must form a part of every investor’s portfolio. The proportion could vary, depending on the investor’s age, monetary requirements, risk appetite, etc.
It is important to have a disciplined and systematic approach to equity investment. Set your own rules and more importantly, follow them strictly.
A long-term monetary commitment, adherence to discipline in investment and decisions based on company fundamentals are essential ingredients for successful equity investment.
Golden rules for investment
1. To be a long term investor
2. Do Your home work Regularly
3. Try to average Price at both buying and selling time
4. Diversification of portfolio
5. Always focus on fundamentals
6. Don’t sell in panic
7. Don’t take loan to invest
8. Invest regularly & gradually
9. Have targets & exit at those level strictly.