The Stock Market And Tips To Survive

The stock market is probably the most exciting market in the world. Fortunes are made and lost every second in the market. At any given time, there are millions of eyes avidly watching computer screens to see how the market is going.

Millions of traders keep an eye on the loads of data, graphs and statistics that keep on changing every second. A small swift in the trade can make you an instant millionaire or an instant pauper.

What makes the stock market thrilling is its volatility. The trade can go your side one minute and the other minute it goes against you. If you are planning on investing in the Indian stock market, here are several tips that will ensure that you start the market in the right footing.

Know when to get out of the market

Stock trading is like a game of poker where there is a huge fortune to be made by the player with the right hand. Just like poker, the stock market is a zero sum game where for one player to win, another must lose.

Still just like poker, there is no guarantee that you will win in every trade that you make. That said, its paramount that you protect yourself from making loses and maximize your returns. The best way to mitigate loses is to set goals. For example, you can set a line at 15-20%. If you make a 20% profit, you exit the trade when the getting is still good.

Don't put your eggs in one basket

Many budding stock traders make the mistake of investing in only one stock. This is very wrong. Although, investing in one stock has the potential of making you huge fortunes if the stock is performing well, you need to remember that the stock also has great potential for a huge crushing blow which would be detrimental on your part.

To be on the safe side, spread your bet across the market. Find a few stocks that are doing well and watch them for a week or two. After you are content that the stocks are good, go ahead and invest in them.

Be updated with current news

When in the stock market, you need to pay attention to the latest press releases on the company that you are interested in investing in. Most of times, positive news result to positive returns while negative press equates to negative returns which is a good indication that the stocks are not good to invest in at the time.

These are the tips that you should always remember. Good luck in your trading and may the market be a bull for you!

at 5:58 PM
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