Investing into stocks requires discipline and discipline needs process.
Market dynamics are such that it forces us to take decision in a hurry.
Many factors test our patience to buy or sell; Screaming media, tips from friends, quarterly results, management interviews, and pumping by operators to name a few.
We need to calm ourselves and control our greed and fear.
In my personal view, one of the best ways to do so is to have an investing checklist. A checklist that one can refer before placing the order to buy or sell a share.
Sharing below the one that I use. Check if it makes sense to you.
(I continually upgrade it based on new learnings and experiences in my own portfolio. So do keep this post link handy. I am also creating a permanent link of this on inves4 home page.)
Buy Checklist
- Are you buying stock in a hurry without giving due thoughts?
- Are you buying it for short term (quick churn) or long term (call on business fundamentals)?
- Is this the best available option out of your watchlist?
- Does overall market sentiments make you comfortable to buy this stock?
- What is one major reason that you are buying this stock?
- only because it has significantly corrected from the top?
- it’s already your portfolio stock and you want to build a larger position? Hope you are not overexposing yourself?
- To ride on the growth or
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Nice read…the check list is well thought-out and extremely handy.