Type of Stocks to Avoid

Type of Stocks to Avoid

    If I could avoid a single stock it would be the hottest stock in the hottest industry. the one that gets the most favorable publicity, the one that every investor hears about in the carpool or on the commuter train- and succumbing to the social pressure, often buys. Hot stocks can go up fast, usually out of sight of any of the known landmarks of value, But since there's nothing but hope and thin air to support them, they fall just as quickly, If you aren't clever at selling hot stocks, you will soon see your profits turn into losses, because when the where you jumped on, price falls, it's not going to fall slowly, nor is it likely to stop at the level look at the chart for Softlogic life insurance. A recent hot stock in the hot insurance industry, which in 5 months went from Rs. 30 to Rs.240 back to 36/-. That was terrific for the people who said goodbye at 240, but what about the people who said hello at 240/- 

If you had to live off the profits from investing in the hottest stocks in each successive hot industry, soon you'd be on welfare .. High growth and hot industries attract a brilliant crowd that wants to get into the business. Entrepreneurs and venture capitalists stay awake nights trying to figure out how to get into the act as quickly as possible.  when you find a stock under these conditions it’s better to stay away.