Every new investor would like to enjoy the continuous winning spree, but such a dream remains short-lived. Remember you can never the boss the market, it will always boss you. Its collective strength is more than your individual strength. But if you follow proper rules of the game, it allows you to play with considerable freedom and you can score a few goals and may be awarded with some ?penalty corners? with the possibility of converting them into goals again. To the day traders, the stalwarts of the game, the area is both heaven and hell. The recent downward slide in the indices has blown off many speculators and day traders off their feet. Millions of dollars were lost within a week. The investors, who had enjoyed highly rewarding 6-7 months, were suddenly taken aback and majority of them lost good chunks of the gains made during that period. A careful investor, therefore, needs to device ways and means to protect oneself, from the abrupt swings of the index. One needs to plan the investments prudently, and the tried and tested rules of the game demand that it is better to keep the long-term interests in mind, than remain jubilant for a short time, through guess works.



Some of the options to remain safe with investments are:

The long-term perspective! You need to cultivate the habit to stay invested. Temptation is so strong; many investors just neglect this advice and pay the price. Such investors have daubed the color of speculation and gambling on the walls of the exchange. Much better, those who desperately seek wealth attend horse races and visit casinos.

The timing! You are in the serious business of finance. Do not ape the astrologer. Do not wait for the high tide or the low tide before deciding to take the bath! As a long-term investor, try to focus on the true worth of a share and then decide whether to invest or not in that particular company. Let the market swings not upset you. If at every swing you sacrifice a part of crop of hair on your head, soon you will be bald. Take early, proper decisions to invest.

Your own homework! You are the best researcher and analyst. Have confidence in your judgment. You need to know the fundamental value of the share that you are buying. The PE ratio is not the be all and end all of the investment. Low PE should not prompt you to make the investment, and the high PE rate is not an automatic choice to take an unfavorable investment decisions. Many important forces like, debt-equity ratio, interest coverage ratio, the quality of management and break-up value of the share merit due consideration.

Penny-wise and pound foolish! Do not be carried away by attractions. Penny stock is one such item. When the index is rising, this one looks good, sometimes very good as it rises faster. When the market falls, the investor stands nowhere. Invest in only those shares where the basics of a company are sound. Tips are no faultless aphorisms. These tips are sometimes planted deliberately

Do not panic! Avoid hassles off fast buying and selling. Go by the pre-decided target and stick to it. Do not be carried away by the opinions expressed in various journals, TV channels and research bulletins of the brokers. Rely on the fundamentals. You have with you a group of shares that are chosen by you for investment. Some appreciate fast, some are stationary and some depreciate. Sell the losers and let the winning share continue to enjoy its fortune. As for the losing one, never hesitate to sell it but before that make a detailed study of the company and try to identify the weaknesses whether it is of short-term nature or will have long tem implications. In the later case, get the share out of your kitty so that your losses are minimal. Find the suitable substitute to fill its place.

The wise old saying goes, ?Go placidly amidst the noise and din.? The sun never rises and sets in a hurry. He takes the predetermined time. Your investment decisions needs to be like that! The world salutes the winner.