If one's stubbornly insistent on dabbling directly in small-cap stocks, these basic tenets may still help to avoid losing his shirt in this high-risk arena:-
1. Invest only what one can afford to lose.
2. Ignore scrips with low-volume trading.
3. Trade only in 2-3 scrips at a time.
4. Research the wish list thoroughly.
5. Fix a practical entry price and target beforehand.
6. Use stop losses to contain emotions and fear.
7. Book profits when reasonable targets are met without greed.
8. Don’t try to be a contrarian investor by averaging costs.
9. Remember that the last one holding such stock will suffer the greatest losses.
10. Bulls and bears may still make some money, but pigs get slaughtered in small-cap stocks.
1. Invest only what one can afford to lose.
2. Ignore scrips with low-volume trading.
3. Trade only in 2-3 scrips at a time.
4. Research the wish list thoroughly.
5. Fix a practical entry price and target beforehand.
6. Use stop losses to contain emotions and fear.
7. Book profits when reasonable targets are met without greed.
8. Don’t try to be a contrarian investor by averaging costs.
9. Remember that the last one holding such stock will suffer the greatest losses.
10. Bulls and bears may still make some money, but pigs get slaughtered in small-cap stocks.