You buy and price falls,you sell and price rises!

Does It happen to you always? Its a common investor problem!! "I bought "XYZ Company" at Rs.2200 and immediately after I bought the price dropped to Rs.2000." I feel sad. Another comes with a different version "I sold "XYZ Company" at Rs.2000 and it went up to Rs.2400 same evening"I made an imaginary loss of Rs.400 per share. Solution You can buy more shares @ Rs.2000 and reduce your overall buying cost. This has to be done only if believe in the fundamentals,management and the future prospects of the company. To do this you need to keep money ready.whatever money you have and want to invest,make it two parts. Then keep one 50% cash aside, only invest with other 50%.So if need ot buy more any stock when the price falls you have ready cash. Also now if you have 200 shares of XYZ Company 100@Rs.2200 and 100@Rs.2000.Then the price goes up to Rs.2400. Sell only 100 of the shares.Then if the price further shot up, you have some shares to sell And participate in the rally to make money.