INVESTMENT MANAGEMENT AND TRADING IN THE STOCK MARKET

Distribution phase. Where the stocks traded in the stock market have achieved high price levels maybe their yearly highs. It is here that the strong hands (knowledgeable investors) are selling equities to the weak hands (not so knowledgeable investors). After the selling is over and done with, we may safely expect a down move in price levels. That is, prices would move down and back to their fair values or below it. Let’s face it, which knowledgeable investor would buy stocks when he knows that there is no margin of safety available in the transaction.

Please remember, whichever phase the market may exist in, it is taking one step at a time. However, depending on the nature of the stage the market may take more than one step in a day. This would cause happiness to investors if the net outcome is positive and sadness if the net outcome is negative.

We have provided below links to various web pages of our website which would be relevant to this aspect of investment management:

In conclusion, this would make us realize that, there are various steps involved before an investor can engage the stock market. Further, it is expected that he (the investor) has an investment system in place for clarity and ease of decision making and implementation of those decisions.