According to the famous equity market investor Peter Lynch, the key to making money in stocks is not to get scared out of them. If you are new to equity trading or think that equity market is not your cup of tea, read on to discover six rules for investing smartly in the equity market!
1. Don’t buy stocks just because someone you know has recommended it! Before buying a stock, conduct preliminary research about the stock and the company. Read the financial statements and find out about the business, promoters and management.
2. Understand you risk tolerance level or how much risk you can take? Make investment in equity market based on your risk capacity.
3. Don’t wait for a correction to enter the market. More money is lost is waiting for market corrections to happen than in market corrections.
4. Do not panic when the equity market falls. Equity markets follow a cyclical trend and are influenced by many factors. The fundamentals and future prospects of the company do not change just because market undergoes a correction.
5. Be disciplined in equity trading. Create individual stop loss levels for all your equity investments based on the volatility of the stock. When the stop loss levels are hit, sell the stock instead of averaging it out at lower levels.
6. Don’t keep dud stocks in your portfolio in the hope that they will go up one day. Cut your losses and move ahead. Invest in some other stocks which will give you a better return in the same time frame.
Stick to these rules and invest smartly in the equity market!
Wednesday, December 22, 2010
Monday, December 13, 2010
Trade conveniently in stocks with Angel Broking
Stock market is the unarguably the best way to build wealth in the long term. But, investors shy away from stock market as they perceive stock markets to be risky. However, it is very easy to invest in the stock market. Contrary to the popular belief, you do not need lakhs to invest in stock market. You can start with a minimal amount and invest regularly in stocks to build a strong portfolio in the long term.
To invest in stocks, you need to have a Demat and Trading Account. If you have an Online Trading Account, stock investing becomes simpler. Just log on to your Online Trading Account and you can buy and sell shares in an instant, without relying on anyone else!
Angel Broking is the top retail broking house in India offering equities, derivatives, commodities, mutual funds, PMS, advisory services, IPO, life insurance, demat services.
Angel Broking has various trading platforms to optimize your trading experience. Angel Diet is for day traders who want the power of terminal trading on their desktop. Angel Trade is for investors who want easy and secure online trading from anywhere. Angel Investor is for investors who want to trade online in proxy and firewall environment like office and cybercafé. Angel Swift is for investors who want to trade from mobile. Angel Lite is for investors who want an ultra-low bandwidth site that works on slow internet connections.
Angel Broking also provides free training to operate the trading platforms. Stock investing is indeed easy with Angel Broking!
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