Tuesday 7 January 2014
3 Tips to Survive the Indian Stock Market
India is a vast country, with
numerous industries emerging in various sectors. Blessed with ample resources
and huge workforce, the scope for the proliferation of industries is huge here.
If there is one noticeable thing that coincides, with this huge potential for
industrial growth; it is the lucrative opportunity of investing in the stock
market.
India is blessed with diversity in
industries and recent years have showed the growth of several sectors. So, any
investor will surely look forward earning huge profits in the Indian Stock
Market. If you are among the high risk-taking investors, who are
looking forward to gain some substantial amount of returns, then you should
definitely brush up on the basics, help you in making smart, but careful
choices.
Plan your exit
strategy
“Anything that goes up is
definitely ought to come down.” Follow this saying completely, and always be
careful while determining the ceiling for a particular stock. Based on the
estimated ceiling, carefully draft your limit orders. Remember, volume plays a
key role along with stock price, while determining profits.
Diversify your
investments
“Whenever a sector collapses, all
the industries within it collapse.” Follow this popular saying while choosing
your stocks. By choosing companies from different sectors, you will get a
better market exposure and you can implement several trading strategies, for
hedging the risk associated with your investments. Always remember, you don’t
have to be the person who earns highest amount of profit, from a particular
sector; you have to be the person who earns maximum amount of overall profit.
Stay updated and
follow the latest market trends
Indian
Stock market is not ruled by principles of general trade; it
is ruled by the speculations of people, who are emotional about their
investments. While playing with stocks, always be wary about the changing
market trends and latest news. Any significant news about a company will drive
the market bearish or bullish, and your investments, will get affected, accordingly.
So, keep a hawk eye on such news, and implement your trading strategies
accordingly.
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