The skill in the Investment Game is manifold. Keeping your cool from an index of 21000 to 9000 and then back to 21000 is not easy.

In fact keeping your cool from 2000 to 21000 over a 4-5 year period was not easy for most of us. Now again the index is at 25,000 (03 June, 2014 at the time of writing this post). Let us say it goes to 35,000 in one year’s time.

The question to ask is:

Will you hold on to all your equities, in the same proportion as you did on 3 June 2014?

– How would have you reacted to one share of yours (which you bought for Rs. 9) becoming Rs. 28? Will you worry about the tremendous jump and sell in PANIC?

– How would you react to a share of yours which has not gone up at all in the past one year when the index went up 40%?

– If your portfolio went up 32%, and your friend’s portfolio went up 60% because of some smart mid cap (or commodity share like EiD parry – a sugar manufacturer?)

– You bought a share Sona Koyo for Rs. 20, sold it at Rs. 25 in a week’s time – and then watched it go up to Rs. 55. How will you react?

– How much will the impact of Sona Koyo on your NEXT trade?

– You bought a share at 151, it fell to Rs. 139, and you told yourself that it is a long term investment. Then you saw it go down to 126. How will you react? what if you sell at 126 and then watch it go to 170? Your reaction?

Ask your self all these questions before you start trading in a big way….