Bob Farrell’s 10 Market Rules To Remember


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  • Markets tend to return to the mean over time.
  • Excesses in one direction will lead to an opposite excess in the other direction.
  • There are no new eras — excesses are never permanent.
  • Exponential rising and falling markets usually go further than you think.
  • The public buys the most at the top and the least at the bottom.
  • Fear and greed are stronger than long-term resolve.
  • Markets are strongest when they are broad and weakest when they narrow.
  • Bear markets have three stages.
  • When all the experts and forecasts agree, something else is going to happen.
  • Bull markets are more fun than bear markets.

Open Offer Or Open Market Sales?


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If you tender your shares in an open offer, if you have held them for over  a year , you will have to pay 20% capital gains tax with indexation benefit, and 10% tax without indexation .If you tender shares within a year, you will have to pay income tax as per your tax slab.

If shares are sold in the open market after a year, they do not attract any capital gains tax, but if they are sold before a year, they attract 10% capital gains tax.Shares sold via the bourses however are subject to the STT.

Investing And Trading In Shares


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What To Expect From Penny Stocks


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Strategies To Make Money In The Stock Market


wealthymattersFirst, remember Benjamin Graham’s mantra “The essence of portfolio management is the management of RISKS, not the management of RETURNS. Well-managed portfolios start with this precept.”

Second,remember what Baron Rothschild said – “I never buy at the bottom and I always sell too soon.” Trying to squeeze the last drop of profit from every deal might not be such a great idea.

Third,consider doing what Bernard Baruch used to do. Some 70 years ago, he would research a stock, buy it, and then each time the stock rose 10% from his purchase price, buy an additional amount equal to his first purchase. If the stock began declining he would sell everything he had bought when the drop equaled 10% of its top price.