There is overall optimism around . Nifty targets for March 2015 are now between 9000 - 12000 .
This is the time to be extra cautious . But since we are not sure how long this rally will last one can follow some basic rules to avoid significant loss of capital
1) Buy in Cash & Avoid leverage
2) Don't sell low leverage high quality stocks whose earning ( EPS ) has improved over last one year .
3) Sell at least 20% of holding in low leverage high quality stocks if you feel prices have gone up by over 100% , but earning have not moved at all .
4) Sell 50% of holding in high leverage ( debts ) stocks wherein debt levels has increased but earning have started looking up.
5) Sell 100% of holding in high leverage ( debts ) stocks wherein debt levels has increased but earning have not started looking up.
Successful investing is all about being crazy , different and less wrong than others . The ideas and process written here may not suit all risk profiles so please check with your financial "doctor" before adopting .
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