The stock market has always been attracting investors. The reason behind is that, more the rate of change in the stock price resulting in more profits for the investor. So everyone who wants his/her savings to work hard as he/she did, invest in stocks. And through stock investment only the maximum profit margin can be earned. But it is also a fact that 95% of the people loose money in the stock market. This fact is quite true and discourages the investor's from investing in the stock market. Therefore through this article an attempt is made to help the investor to increase the chances of profits and decline the chances of losses.
There should be stages in which the whole process of stock market investment should take place.
Stage 1: Look for various famous and infamous stocks in the stock market. Discuss about the stocks with the friends, agent's etc. Note here that the discussion does not means that you agree everybody's view point. The motive is get initial stage information and there after your personal view will depend on facts and figures and not just words of mouth.
Stage 2: Pick out some stocks from various sectors, which attract you. The sector available for investment can be Information technology, Banking, Capital goods, Fast moving consumer goods, Construction, Petroleum etc. It is always preferred to invest in all the selective sectors so that if one sector faces decline, the boom in other sector may decline your losses.
Stage3: The information about the picked stocks should be gathered. Like the last year market value of the stock, profits comparison during last three to four quarters, news and views on the net or newspaper regarding company's inside management changes, decision regarding growth, development, expansion etc.
Stage 4: Look for the stock market conditions. That is if the stock market has been rising from the last six months. Than this is not the right time to invest. So much hikes in stock market results in the fall of the market in the coming future. So it will be better to play safe than taking hasty decisions for investments and get tucked in some expensive stock. Wait for the market to make corrections and than some part of investment can be made just to make a start. Note here that fifty percent of the investment available should not be used until you see a steep market fall for at least fifteen days. After these fifteen days only, an investment should be made in the pre-determined stocks. Investing after a few days of market falls may bring to you costlier stocks for investment.
Stage 5: Investment in proportions like starting 10% and then 20% and later again 20% is preferred. The rest of 50% should be saved for the market fall. Remember here again, that the market falls continuing for fifteen days after will prove real investment timing for you.
Stage 6: Do not make hasty decisions in selling also. That is if the bought stock prices decline then its better to wait for some time rather than booking losses. Therefore it is always suggested to use such money for investment in stocks which are in no need for the investor for at least one year. If a person make investment thinking that he/she will take out the money in one week or so, then his/her investment may prove to be insane. And the person may have to sell the stocks at losses so as to fulfill the monetary requirements.
Stage 7: Finally selling should be done after attaining the expected amount of profits. For instance if a person bought a stock at 8$ and the stock is now 18$ then the stock is ready for selling. A person may even opt for half of the selling of the stocks and may wait for further upward movement up to some extent only; otherwise full selling will be preferred. But if a person does book even a little profit at these levels and is waiting for 30$ target then his/her investment is in great danger and if a market falls come than all the profit may be lost from that specific stock.
Thus moving in stock market the above stated stages will help the investor's to decline the chances of losses and the chances of earning profits may rise.
How to play safe in a stock market...A ten step method for guaranteed results..
A stock market is a place, which attracts many people but also had made many people bankrupt. It is said that only those people make money from the stock market, which have experience. Let's forget this old thinking and tell you real way to play safe in the stock market and earn good money. Let's make you an experienced stock trader in ten minutes.
Investing in stock market should be done in a manner that it hurts less and benefits more. Therefore never invests full amount in the stock market. Say if you have one million dollars to invest in stock market. Then don't invest one million in one day in one stock. Move your investment in the following method.
Look out for the various kinds of stock attraction. Talk to people, read market news and expert views.
Pick out the best suitable and attractive one for you.
Invest 25% of your investment in initial stage on your picked stocks. Remember here that investing in more than one stock will help reducing the chances of loss due to one stock.
Wait for ten to fifteen days and watch the movement of your stocks.
If the stock starts moving up and then make 25% more investment moving your investment up to 50%. Remember here to buy other picked stocks. In case your stock is declining up to some points only than buy more stocks of the same kind so as to decline your average buying rate.
Leave the 50% of your investment safe in the bank and wait for the market decline.
When the market decline up to 25% then only make the next 25% investment which moves your investment up to the level of 75%.
Always make sure to take out the last 25% whenever the market moves upwards.
Take control over your greed of earning and make profits up to certain without waiting for double or triplet to come out of your investment.
Make the last 25% investment only when the market declines up to 50% or so. Because that will be the time when you may find your investment tucked in stocks and you have no finance to make more money.
There you are. You are now an experienced stock market person. Now go and play safe in stock market and make big money. And don't forget to thank god for helping you.
Stock market recommendations.
People from around the world are now investing in stocks with a motive to earn a good profit margin. Some people invest in stocks by using their savings, while other has made it their primary source of income. That is the intra-day move in the stocks helps the people to buy and then to book comfortable profits.
Many people have made their living through stock market. But the truth is that many have even lost big chunks of money. The reason for loosing so much money is the stock market is mostly.
Impatient nature of the investor.
Improper method of investing.
Inexperience way of outlook towards the stock market.
Lust for more profits.
Investing without proper book reading and understanding.
Thus the above reason results in loosing money in the stock market. Therefore people who don't have enough time and experience is always advised to invest in the mutual funds or use the step by step method of investing. The step by step method suggests investing in the form of monthly installment method.
Become the real benefited of the stock market.
The real benefited is the person who has really earned profits from the past so many years. Such person's investment and the return from the investment both rose with the passage of time. Every one today wants to become the real benefited but hardly some of them reach the mark up level.
To become the real benefited of the stock market a person has to go through the recommendations in the following so that the chances of loosing money decline. While the probability to get higher return from investing increases.
Recommendations:
A number of recommendations are suggested for the stock market investor's. These recommendations include the followings.
Investing in the form of systematic investment plan wherein the investment is made in the form of monthly investment plan. Such kind of investment is suggested for amateur and inexperience kind of investors. A person with not time to invest in the stock market is advised to invest through mutual funds.
Keep a control on your lust for earning huge profits. When the return from investment crosses the expected levels than the mind for selling should be prepared. Waiting for the investment to give double or triple returns increases the risks, which may results in selling the stock at decline and decreasing the already available return by selling the stock.
It is not advised to buy stocks at higher prices or when the stock market is making new highs. And if you do, then keep patience in case of decline the stock price or make stop loss in advance. Actually people get tempted to buy the market favorite stocks which show higher returns on the chart. But the fact is that such stocks are rising immensely not only due to the news and any other real factor. Such stock price may rise due to high investment made by the big investor to earn big profits and later to sell off high chunks of stock, making other people tucked in the same stock.
Stick to your stocks, which have valid reasons and news that are sure to make good returns in future. Don't jump to market favorite stocks, which are giving unnatural returns. After all the stocks you invested was the result of market research and some valid reason. So trust your decision and stick to it, as the market does not move the way it really should be, but the way the investor makes it move. So if your investment is made after careful go through than it is bound to give good returns.
Read carefully the offer document before investing is one major factor recommended to the people. Actually the offer document consists of the write up for reason and placement of the investor's money. Therefore the right placement and motive investment decides the real position of the new offer documents. That is if the new offer document is meant to meet growth and development requirement that the return can be expected to be good. While the new offer document meant to meet the repayment loan or any other of such kind of requirement will possibly not give enough returns on your investment.
Invest in a variety of stocks so that the chances of loosing money decline. That is a person make a whole lot of investment in one stock than his/her whole fate will depend on the fate of that particular stock. Making investment in a variety of stocks means making investment like some investment in banking stocks, capital goods stocks, FMCG (Fast moving consumer goods) stocks, infrastructure stocks, IT (Information technology) stocks. The possible movement in one kind of stock will help you join the party and not lagging behind by investing one particular stock.
Invest in stocks that have news and good future prospects. That is a stock with good future prospect and a solid reason to grow should be one selected for investment. Do not move on with investment just by the word of mouth or sayings of the close friends. No one can predict the market movement; these are all guesses and depending on guesses are not a good idea after all.
Keep an eye on the world stock markets, as the international stock market movement does effect the today's stock market movement of the country. Like market falling in Asia is joined by market falling in the East, similarly the Asian markets join the United States market falling.
Such money should be used in investment in stocks that you expect not be in use in near future. As if the immediate requirement of money may force you sell your stock at loss.
Evaluation:
A number of stock market recommendations are stated in the above. The need is just to sit back, read and understand and every single point so that the investment can be made safer and fruitful.
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