Stock market is one of the most volatile and ever-changing domains which have to be traded. Here are tips to keep in mind before and while staying invested in the stock market.
- Avoid panic. Having invested knowing the company’s profile, one should be not be tempted to sell it the moment there is few amount of loss.
- Try to maintain a stop loss. After a realistic time of investment if one sees a continuous fall over a prolonged time a stop loss amount can reduce the amount of loss.
- Try to invest in better companies (blue chip) at a fair price.
- Don’t always rely on the hottest tip of the day. This can be dangerous if sound analysis of the stock is not done.
- Do not set up a preexisting personal rule. Setting a target of doubling the money and then selling off is one approach but equally you want to be open to the idea of not selling while a stock is performing well.
- The analysis of the fundamentals should be done.
- The long term approach. Long term investments can help you plan for the future.
- Portfolio analysis before investment is advised.
- Try to enlarge your domains (sectors) of investments in order to cash on both bullish and bear market.