Continued from 10 STEPS TO BECOME A BETTER INVESTOR (PART I)
6. Don’t try to time the market: Many investors try to buy at the lowest point and expect to sell it at the top most price available.
Not even Warren Buffett has been ever able to time the market perfectly with 100% accuracy.
Instead of trying to time the market, what Buffett suggests investors to follow is the valuations of the stocks. Valuations never lie. You should invest in companies which have cheap or reasonable valuations and try to sell it when you feel its valuations are high. Great indicators of valuations are Price-to-Earnings and Price-to-Book Value.
7. 52 Week High & Low: It is very common for investors to invest in stocks which have Continue Reading