Nine golden market rules for investors

Canada, 13th October: Do you want to know some of the timeless rules to help you get best returns on your investments? Read on to know what are some best rules--

Take a look at the ones listed below----

• Market insanity periods are short-lived---The most important thing to be kept in mind is that whether its extreme pessimism or optimism in the market, such are short-lived periods and are going to lead to saner market levels. So, a piece of advice for all individuals looking to make investments is to make an investment plan and remain sticking to it without being effected by the daily dose of ups and downs in the market.

• Show patience to safeguard your capital---Patience and knowledge are key-points for keeping your investment safe in the market. Don’t panic or swayed by the swings in the market as these are just temporary phases which should be understood by an experienced investor.

• Excesses are temporary—When the mood in the marketplace is upswing, it tends to make even the most experienced investors believe that they can make huge profits during this time. But, this is a sheer myth, advice several financial advisors. The markets are bound to return to the mean and its best to cash in on profits without becoming greedy.

• Stay balanced during market panic—Do not ever commit the mistake of responding emotionally when the markets tend to become panicky, say the experts. Rather, stay decisive while trading in fast-moving markets.

• Investors buy less at the bottom and most during the peak markets—An average investor simply believes what he reads or watches through the media. And by the time he is briefed about the mood of the markets, the move is already over leading to a reverse move. So, the advice is not to follow the herd and have an independent view.

• Disciplined approach towards trading---Rather than following your heart, the golden rule for successful investments is to adopt a disciplined attitude towards trading. This is applicable to every day trader as well as a long-term investor.

• 3 stages of bear markets include reflexive rebound, sharp down and fundamental downtrend—This is the typical pattern of bear markets which needs to be kept in mind by all investors.

• Markets respond differently when all experts have same opinion—Although this may sound a bit untrue, but the fact is that markets behave in a manner different than the way predicted by all experts.

• Bull markets funnier than bear markets- Unless you tend to be a short-term seller, you will find fun while trading in bull markets as compared to bear markets.

With above rules in mind, you are ready to follow a right path to sail through the market swings.