Every time we see a plunge in the stock market, we feel the need to buy stocks. At least I do. The recent pull back encouraged me to buy a few stocks. As long as you buy stocks for investment, i.e. you hold on to it, it’s fine. In fact , to me, every slump is an opportunity for investment in stock market. But, when you try to trade in stocks then there are some precautions you must take.
Before reading rest of the article, do keep in mind that trading is a risky venture. I strongly discourage people who are in debt from in form of trading. As a rule of thumb, if you can’t generate enough saving to pay off your dues, you should’t spend any money in trading. In fact, at time, trading becomes as risky as gambling. especially when you day trade based on speculation alone.