market corrections are rarely more than 33% from the highs
sometimes they are much less, or, the rebounds from the correction lows are so fast that u r not able to get on to the band wagon again.
not only this, u rarely trust the bounceback after correction so easily. u keep on suspecting the recovery and keep hoping that the stock will go down further before u buy back the stock again.
four more logics and the argument in favour of staying put with the good stocks in correcting markets is complete.....
1. any gains in the stock will be totally tax free if u stay invested for more than 1 year! u will save upto 33% tax u were otherwise required to pay! that 33% will take care of any potential 33% decline!
2. u don't miss on any bonus issues or dividends etc.
3. peace of mind.
4. you can always buy more when good stocks decline!
sometimes they are much less, or, the rebounds from the correction lows are so fast that u r not able to get on to the band wagon again.
not only this, u rarely trust the bounceback after correction so easily. u keep on suspecting the recovery and keep hoping that the stock will go down further before u buy back the stock again.
four more logics and the argument in favour of staying put with the good stocks in correcting markets is complete.....
1. any gains in the stock will be totally tax free if u stay invested for more than 1 year! u will save upto 33% tax u were otherwise required to pay! that 33% will take care of any potential 33% decline!
2. u don't miss on any bonus issues or dividends etc.
3. peace of mind.
4. you can always buy more when good stocks decline!
1 comment:
Great collection and it is very helpful for me in my trading stock options. Thanks for this.
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