5 Investment Mantras To Stay Ahead In This Volatile Market

2. Calculate your risk appetite

Risk appetite varies from person to person. It depends on one’s financial status, family background, income level, health and age. A high risk high return kind of investment may not be suitable for everyone. One must therefore calculate his risk ability to make sure that associated risk is not beyond capacity.

3. Sell the right stocks

Sell your losers and let your winners run. How many times have you sold a stock that was up a few points while keeping one that was down? Guess what? Wrong move. The stock going up is doing what you expected; the one going down is not doing what you expected. Sell the loser! Not the winner.

Also remember it is better to average up than to average down. Stocks go down for a reason. If you buy a stock and it goes down, why buy more? If you have a stock that is going up, well, wouldn’t you want to own more of your winners?