Tuesday, May 18, 2010

Stock Market Tips

Stock Market Tips

Stock market has become an explosive way to earn money in India. Stock market investments are like a see saw ride. A minute change in balance may result in huge ups and downs. Nothing could be determined in advance regarding the way market behaves. However, it still holds reputation of being one of the most utilized tool to make quick money. NSE, BSE and other stock indices in India have numerous risks in investment that can result in a havoc.

Here are a few tips that would hopefully save you from losing a lot of cash in the current frenzy.

Don't make huge investments

Stock market can be a pool of profits or a ground of heavy loss. Be careful in money management during investments in shares. Don't invest huge amounts at one go. Keep a track on top losers and top gainers at stock market. When the market falls, buy some shares. When it dips again, go for the second leg and buy the shares. To summarize, pick up the shares in stages. Keep yourself updated with fruitful derivatives at BSE & NSE.

Buy and Sale of stocks

Only buy fundamentally strong stocks, which are undervalued. Choose out for companies with strong management and avoid the loss making companies. When the market dips, go ahead and buy some stocks. Bank upon most active shares in NSE & BSE & . Don't just buy stocks in one sector. Make sure you are invested in stocks of various sectors. Try out various stock options & Nifty options. Sell the shares when the market peaks. The peaks and low points of a share can't be pre-determined. For this purpose, keep a close watch on the share price for sometime and then take appropriate desicion.

Dump the Junk

Share market is very dynamic and volatile. It keeps fluctuating within no time. Don't panic in such situations. If the prices of your shares fall, don't sale them in a hurry. Stay invested if nothing fundamental about your company has changed. Any shares you bought but no longer showing a profit, you could consider selling them at BSE & NSE. Even if they are not going to give you a substantial profit, it is time to dump them and utilize the money elsewhere if you no longer believe in them.

Track the performance and invest

Keep a track on the share of your choice for sometime before investing. A stock does not become a good buy simply if its price increases phenomenally. Once investors start selling, the price is bound to fall down. Invest in companies with proven management and avoid loss making companies. A comprehensive market watch can help your cause. Tools like BSE sector watch and NSE sector watch are an efficient means for the same. So it's very important to keep a track on the performance of the share over a period of time.

Research Analysis

Careful analysis of the current market conditions is necessary before investment. at the same time comparing the same with the past trend can turn the share market in India reliable for you. Market experts, backed by years of market experience, provide high accuracy rate and increased efficiency in the tips offered. It is but true not to blindly follow the tips, self knowledge and using your own judgment should be equally considered. Successful stock trading is a result of your efforts of research and analysis in choosing potential stocks related to short term and long term investment products.

By : Saranjeet Singh


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