The stock market broke 6400 last Friday, February 28, 2013, and closed at 6424.99. The market seems to be in a good standing nowadays. I just hope that it continue this way, but just be aware that what comes up must come down. In the stock market we cal it correction. You need to be very careful in doing Tsupit mode in the stock market if you are in the stock market, I believe you know what I mean. You will never know if it will continue to go up or will it go down.
Others do cost averaging, and other use Technical Analysis in trading the stock market. What ever is your method in investing it is very important for you to know first your goals and objective in investing. Your goals will drive on what Risk can you take. When I say Goals it should be define and specific.
Entreleadership Book by Dave Ramsey quote as follows:
“Vague Goals are not Goals, they are dreams and wishes, you don’t want to end up being one of those dreamers who do nothing.”
We need to be specific in our goals, as an example if your goals is “you want to earn money”, the sentence or as mentioned is not complete you need to put time to complete your goal, is it 1 year?, 2 years? or more. You also need to specifiy the purpose of your goals. There are times that when we meet our goal, we don’t use it where we plan it to be used.
The Goals should be SMART, Specific, Measurable, Attainable, Relevant and Time Bound