Some important principles.

Some important principles.

Share market in the long term is known to surpass any other asset class in terms of the profits that can be made. However no doubt that this is one of the riskiest method of making money.
Never invest all your money in equities:
Never invest the money you have saved for your daughters marriage which may be coming up in the next one and half years because someone said that in one and half years, you can double that money in equities.
In one and a half years it could as well become half the value of the capital. Hence keep apart an amount for investing into the equity market. That should never be money that you need for an emergency or other important matters.
Money that you have kept aside for equity investment must be purely an amount that can be forgotten for a longer period of time because making money in the market does not happen overnight.
Major crashes are opportunities to buy:
Normally when there is a sale in the supermarket, people run to buy as much as they can as they are getting it cheap. However when there is a stock market crash and when your favourite companies shares are available at rock bottom prices (assuming nothing has affected companies business prospects), that's the best time to buy them in fact. Normally when everything is positive and the market is in an uptrend, people go and buy and when it has crashed, people sell their stocks and run for cover. Opposite is the strategy to adopt.
Greedy when others are fearful, fearful when others are greedy.
This is one of the principles experts proclaim. That's when others are fearful (a time when market is down), get greedy because you get shares cheap. As mentioned previously, generally when shares are climbing up and NEPSE conquering new highs, all flock to buy. However When the shares are climbing down and the market is crashing people sell and run for cover.
Only thing you should try to ensure in such circumstances is that crash is total and that you have seen the bottom. It is however difficult to ensure this. However when your favourite share is available at good prices even if it is not the lowest possible, that's good buy.