It is important to establish appropriate benchmarks in order to measure the performance of your stocks, as compared to your expectations. Develop standards for how much growth you require of each specific investment in order to consider it worth keeping.  Typically these benchmarks are based on the performance of various market indexes. These allow you to determine whether your investments are performing at least as well as the market overall. It may be counter-intuitive, but just because a stock is going up does not mean it is a good investment, especially if it is going up more slowly than similar stocks. Conversely, not all shrinking investments are losers (when similar investments are doing even worse). You must compare the performance of each investment to the expectations you established for it in order to determine its worth. This goes for assessing your other asset allocation decisions as well.  Investments that do not meet expectations should be sold so your money can be invested elsewhere, unless you have good reason to believe your expectations will soon be met. Give your investments time to work out. One-year or even three-year performance is meaningless to the long-term investor. The stock market is a voting machine in the short term and a weighing machine in the long term. Once you have purchased stock, you must periodically monitor the performance of your investments.   Circumstances and opinions change. This is a part of investing. The key is to properly process and assess all new information and implement any changes according to the guidelines set in the previous steps. Consider whether your market expectations were correct. If not, why not? Use these insights to update your expectations and investment portfolio. Consider whether your portfolio is performing within your risk parameters. It may be that your stocks have done well, but the investments are more volatile and risky than you had anticipated. If you aren't comfortable with these risks, it's probably time to change investments. Consider whether you are able to achieve the objectives you set. It may be that your investments are growing within acceptable risk parameters but are growing too slowly to meet your goals. If this is the case, it's time to consider new investments. After all, you are an investor, not a speculator. In addition, every time you take a profit, you incur capital-gains taxes. Besides, every trade comes with a broker's fee.  Avoid stock tips. Do your own research and do not seek or pay attention to any stock tips, even from insiders. Warren Buffett says that he throws away all letters that are mailed to him recommending one stock or another. He says that these salesmen are being paid to say good things about a stock so that the company can raise money. Don't pay too much attention to media coverage of the stock market. Focus on investing for the long term (at least 20 years), and don't be distracted by short-term price gyrations. Never stop learning, and continue to read as many books and articles as possible written by experts who have successfully invested in the types of markets in which you have an interest. You will also want to read articles helping you with the emotional and psychological aspects of investing, to help you deal with the ups and downs of participating in the stock market. It is important for you to know how to make the smartest choices possible when investing in stocks, and even when you do make wise decisions you should be prepared to deal with losses in the event that they occur.
मानदंडों का निर्धारण करें: अपेक्षाओं के अनुरूप प्रदर्शन की तुलना करें: सतर्क रहें और अपनी अपेक्षाओं को अपडेट (update) करें: अत्यधिक व्यापार के लालच से बचें: यदि जरूरत हो तो किसी जानेमाने ब्रोकर, बैंकर, या निवेश सलाहकार की सलाह लें: