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Learn Share Trading
If you are new to the day trading then you must be wondering which method I should follow, which software is best for day trading etc. In this process of gathering information and experiencing with new tools day traders used to lose maximum part of their money.In all my seminars and lectures I have taught proven wonderful day trading mathematical models. In this I am going to describe the simplest, no cost principle for the day traders. I will recommend you to an online website or tools to implement my principle. Only tool you need is a simple mathematical calculator. Most of the time day traders used to forget their finest experience in the stock market. I have pulled those finest experiences and prepared this course for you. I have devised this study into two parts in part one I will describe the basic principles of day trading and in part two I will describe few examples and give you few home work. You need to do some paper trade (virtual trade) to practice this principle.
Types of Day Trading:
Day trading mechanism devised into three categories.
Stop loss trading mechanism:
In this principle trader initiate position with some stop loss in mind if the trade goes against the trader then trader exit the position with some acceptable loss.
Swing Trading Mechanism :
In this principle trader initiate positions keeping in mind that if the trade goes against the view then trader will initiate an opposite leg trade upon achieving the stop loss. Say you have bought tata steel at 450 with stop loss 435. As a swing trader your view will be if tata steel will fall to 435 you will close your existing long position and re-enter fresh short position in same counter.
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Investment Objective:
Every investor has a reason to invest depending upon their various needs and financial goals. There is no one solution to all. In order to cater to a wide range of investor requirements, various types of mutual funds categories are designed to allow investors to choose a scheme based on the risk they are willing to take, the investable amount, their goals, the investment term, etc. For example, a young investor may take more risks and opt for an equity-based mutual fund, whereas a retired investor might do well by channelizing his funds towards a debt-based mutual fund with only a small or zero exposure to equity. Similarly, while a long-term investor might take the Systematic Investments route and reap the benefits of staying invested, an institutional investor might just park excess funds in a liquid fund for just a few days and earn handsome returns.
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Central Depository Services plans Rs 400 crore IPO
MUMBAI: Central Depository Services (CDSL) has initiated the process to launch an initial share sale. Its major shareholder BSE and a clutch of banks want to sell 25-30% in the share depository for Rs 300-400 crore in a public offering, said two sources close to the development. If the stake sale happens at the expected price, it would value CDSL at approximately Rs 1,200 crore.
Responding to an email query from ET, CDSL said it had no comments to offer in the matter. BSE also declined to comment.
Promoters of CDSL and top officials of the depository had met some time ago to discuss the valuations and other details, the sources said. In addition to BSE, other large shareholders of CDSL include Standard Chartered Bank, HDFC Bank, State Bank of India and Canara Bank, among others.
The stakeholders are seeking premium valuations due to regulatory restrictions in setting up such a new venture and the oligopolistic nature of depository operations in India.
As of now, there are only two large depositories in the country — the CDSL and the National Securities Depository (NSDL). Between them, the two control 99% of the equity market business. The CDSL has 93.97 lakh and the NSDL has 1.36 crore demat accounts.
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Investment in Rajiv Gandhi Equity Saving Scheme
If you are an Indian resident, earn less than Rs 10 lakh a year and have not done any equity transactions before 23 November 2012, then you are eligible for investing under the Rajiv Gandhi Equity Savings Scheme (RGESS).
Under this scheme, first-time equity investors can invest up to Rs 50,000 in approved stocks and mutual funds and claim income tax deduction on 50 per cent of the amount under Section 80 CCG of the Income Tax Act. This is over and above the Rs 1 lakh limit under Section 80 C.
HOW TO INVEST: To be eligible for investment under this scheme, you must open a demat account and designate the demat account for RGESS by submitting the duly signed ‘Form A’, which is available with brokerage houses.
You can invest in any of the eligible mutual funds or stocks in lump sum or in installments during the year in which the deduction is to be claimed. Though any amount can be invested through the demat account, tax benefit will be available only on an investment of up to Rs 50,000.
The investments under the scheme would automatically be subject to lock-in during the first year. From second year onwards, you can sell the units of securities if you maintain the minimum amount for which you have claimed income tax benefit. Failing to do so will lead to reversal of the tax benefit availed.
The tax benefit under RGESS is available only for one year. If an investor has claimed a deduction once, he will not be allowed any deduction under the scheme in subsequent years.
One can invest in non-RGESS stocks and mutual funds through the same demat account and those investments would not be subject to conditions such as the lock-in of the scheme.
If you invest on the last trading day of the financial year, you get a three-day grace period so that the securities get credited in the demat account and you can avail tax benefit under the scheme.
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Stock Brokers in India
1) Full service or discount broker:
The main difference among them is full service broker would charge you brokerage as a percentage of your trade value(for ICICI it lies between .5% – .9%). while discount broker are much cheaper charging you based on the number of trade. Most of the discount brokers charges between Rs 15 to Rs 30 per trade irrespective of the trade volume. So if you are going to trade multiple times a month, go for a discount broker rather than a full service one. To understand there difference better, please have a look at the video below. With the increase in number of stock broker, people have a lot of option to choose from, but still it is not easy to choose. You need to be sure of what is that you want. Some pointers to keep in mind before deciding on the brokers are:-
2) Online trading vs Offline/Phone trading: Most of the brokers have started to provide online trading services to their customers. Some of them also provide trading on phone or even physically at their location. Decide what would be a good fit for you. If you are comfortable trading online from your laptop/desktop, you will find that most of the major brokers are providing that services. There are some people who prefer to trade on brokers terminal, make sure that you check with your broker if he have a terminal near your place.
3) How often do you trade: Whether you are a trader or investor. Investor is someone who trades few times a year while trader will trade at least few times a month. If you are an investor brokerage generally won’t make a big difference in your returns while if you are a trader, brokerage can mean whether you end up making a profit or loss. By that I mean that brokerage adds up for traders.
4) Will you require advice to trade: Would you need financial adviser to trade or would you be trading on your own? If you need adviser, remember to get some historical data of how good the adviser is and would you be comfortable giving him your money. Full service broker generally will have research desk which will send you a lot of recommendations for trading in stocks. Do remember to check there historical recommendations and if it matches your investment needs. Some of the full service broker will even provide you with the service of Relationship manager which will call you a couple of times a month and telling you about the new investment ideas.
5) Internet savvy: Newer generation people are tech savvy and don’t mind to trade completely only. If you are like then, discount brokers would be a good fit and if you are someone who prefers to know the face of the brokers, this list would be of little use to you as I have not included any local brokers here. But if you do use local brokers, I would suggest that at least compare their brokerages with some of the new discount brokers to see how much money you are losing by way of higher brokerage.
In the last couple of years, with the increase in internet penetration in India, I have added some of the major discount brokers also in the top 10 list. They are not the largest but are giving full service brokers a run for their money and increasing their market share every quarter. I would suggest to read there reviews before finalizing your brokers. Times are changing and I think that in next couple of years more and more brokers would move from being a Full service broker to discount brokers. And as far as safety of discount brokers are concerned, most of the brokers have a robust risk management in place and follow stringent SEBI rules.
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Depository Service in India
A depository is an organisation which holds securities (like shares, debentures, bonds, government securities, mutual fund units etc.) of investors in electronic form at the request of the investors through a registered Depository Participant. It also provides services related to transactions in securities. At present two Depositories viz. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) are registered with SEBI. The minimum networth stipulated by SEBI for a depository is Rs 100 crore.
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IPO Process Explained
We all know what an IPO is and what the purpose of an IPO is for the company issuing the share. But, not many of us know the different requirements that a company must satisfy in order to go public and the different stages in the life cycle of an IPO. The purpose of this article is to elaborate on this. So, lets get started. What is an IPO – To Refresh: An IPO stands for Initial Public Offering, wherein a company issues its shares to the public for the first time. Investors can place requests to buy these shares and once done, the share gets listed in a registerd stock exchange and the company uses the share issue proceeds for its development/growth. Before we take a look at the steps in an IPO process, lets take a look at the entry norms for an IPO. Entry Norms for an IPO: Not all company’s can issue shares to the public. SEBI has provided a list of requirements that need to be met by a company if they wish to go public. A company that wishes to go public needs to meet all of the below mentioned criteria… Entry Norms I or EN I: 1. Net Tangible assets of atleast Rs. 3 crores for 3 full years 2. Distributable profits in atleast 3 years 3. Net worth of atleast 1 crore in 3 years 4. If there was a change in name, atleast 50% of the revenue in the preceeding year should be from the new activity 5. The issue size should not exceed 5 times the pre-issue networth of the company To provide sufficient flexibility and also to ensure that genuine companies do not suffer on account of rigidity of the above mentioned rules, SEBI has provided 2 alternate routes to company’s that do not satisfy the criteria for accessing the primary market. They are as follows: Entry Norms II or EN II: 1. Issue shall be only through the book building route with atleast 50% allotted mandatorily to Qualified Institutional Buyers (QIBs) 2. The minimum post issue face value capital shall be Rs. 10 crores or there shall be a compulsory market-making for atleast 2 years Or Entry Norms III or EN III: 1. The “Project” is appraised and participated to the extent of 15% by FI’s/Scheduled Commercial Banks of which atleast 10% comes from the appraiser(s). 2. The minimum post issue face value capital shall be Rs. 10 crores or there shall be a compulsory market-making for atleast 2 years 3. In addition to the above mentioned 2 points, the company shall also satisfy the criteria of having atleast 1000 prospective allotees in future. Steps in an IPO Process: Let us now have a look at how an initial public offering process is initiated and reaches its conclusion. The entire process is regulated by the 'Securities and Exchange Board of India (SEBI)', to prevent the possibility of a fraud and safeguard investor interest. Selection of Investment Bank The first thing that company management must do when they have taken a unanimous decision to go public is to find an investment bank or a conglomerate of investment banks that will act as underwriters on behalf of the company. Underwriter's buy the shares of the company and resell them to the generalpublic. The company must also hire lawyers that can guide them through the legal maze that an IPO setup can be. It must be ready with detailed financialrecords for intensive fiscal health scrutiny that SEBI would perform. Some companies may also opt to directly sell their shares through the stock market, but most prefer going through the underwriters. Step 1: Preparation of Registration Statement To begin an IPO process, the company involved must submit a registration statement to the SEBI, which includes a detailed report of its fiscal health andbusiness plans. SEBI scrutinizes this report and does its own background check of the company. It must also see that registration statement fulfils all the mandatory requirements and satisfies all rules and regulations. Step 2: Getting the Prospectus Ready While awaiting the approval, the company, with assistance from the underwriters, must create a preliminary 'Red Herring' prospectus. It includes detailedfinancial records, future plans and the specification of expected share price range. This prospectus is meant for prospective investors who would be interested in buying the stock. It also has a legal warning about the IPO pending SEBI approval. Step 3: The Roadshow Once the prospectus is ready, underwriters and company officials go on countrywide 'roadshows', visiting the major trade hubs and promote the company's IPO among select few private buyers (Usually corporates or HNIs). They are fed with detailed information regarding company's future plans and growth potential. They get a feel of investor response through these tours and try to woo big investors. Step 4: SEBI Approval & Go Ahead Once SEBI is satisfied with the registration statement, it declares the statement to be effective, giving a go ahead for the IPO to happen and a date to be fixed for the same. Sometimes it asks for amendments to be made before giving its approval. The prospectus cannot be given to the public without the amendments suggested by SEBI. The company needs to select a stock exchange where it intends to sell its shares and get listed. Step 5: Deciding On Price Band & Share Number After the SEBI approval, the company, with assistance from the underwriters decide on the final price band of the shares and also decide the number of shares to be sold. There are two types of issues: Fixed Price and Book Building Fixed Price – In a Fixed price issue – the company decides the price of the share issue and the number of shares being sold. Ex: ABC Ltd public issue of 10 lakh shares of face value Rs. 10/- each at a premium of Rs. 55/- each is available to the public thereby generating Rs. 6.5 Crores. Book Building – A Book building issue helps the company discover the price of the issue. The company decides a price band and it gives the investor an option to choose the price at which he/she wishes to bid for the company shares. Ex: ABC Ltd issue of 10 lakh shares of face value Rs. 10/- each at a price band of Rs. 60 to 70 is available to the public thereby generating upto Rs. 7 Crores. Here the amount generated through the issue would depend on the highest amount bid by most investors. Step 6: Available to Public for Purchase On the dates mentioned in the prospectus, the shares are available to public. Investors can fill out the IPO form and specify the price at which they wish to make the purchase and submit the application. This open period usually lasts for 5 working days which is a SEBI requirement. Step 7: Issue Price Determination & Share Allotment Once the subscription period is over, members of the underwriting banks, share issuing company etc will meet and determine the price at which shares are to be allotted to the prospective investors. The price would be directly determined by the demand and the bid price quoted by investors. Once the price is finalized, shares are allotted to investors based on the bid amounts and the shares available. Note: In case of oversubscribed issues, shares are not allotted to all applicants. Step 8: Listing & Refund The last step is the listing in the stock exchange. Investors to whom shares were allotted would get the shares credited to their DEMAT accounts and for the remaining the money would be refunded
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NSE to help people learn about stock market basics
India’s leading bourse the National Stock Exchange (NSE) organized extensive investor awareness programmes in Belonia, Khowai and Gomati districts of Tripura last week to help people learn about the basics of stock market, financial planning and safe investing.
Since inception, NSE has made efforts to reach out to people in various cities and empower them with information on market products, benefits of investing and how to invest safely, an NSE release said today.
The eight states in the region including Tripura witnessed around 18 per cent growth in people’s participation since the last general election (year on year basis), the release said.
Ravi Varanasi, Chief, Business Development, NSE said, “We have constantly reached out beyond metro cities, with an aim to bring more people into the formal financial system.
“Growth in the financial sector will throw up multi-dimensional opportunities in the coming years. Our attempts will also ensure faster financial inclusions.
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Ahmedabad bourse to start commodities trading soon
The ahmedabad stock exchange (ase) has finally decided to forge an alliance with the Ahmedabad commodity exchange (ace) for its foray into commodities trading. this is one of the first stock exchanges in the country which has finalised its plans of getting into commodities trading. the ace has been selected because of its local accessibility. the brokers of ase had offered conflicting view for tying up with commodity exchanges when ase was talking to ace and the Bombay commodity exchange. those in favour of bombay commodity exchange had argued that it would provide larger and better platform for commodities trading. “we are joining hands with ace because of its local access,” ase president mihir shah told it , when contacted. ase has sought the permission of tata consultancy services (tcs) for upgrading its programme for commodity trading at ase, Mr shah said. at present, tcs is providing software services to ase for its on-line trading.”after receiving the tcs approval for upgrading its system, a joint application will be sent to the forward market commission (fmc) for its nod to start commodities trading at ase,” mr shah added.according to mr shah, as per the preliminary understanding between the two exchanges, the ace will provide memberships of its exchange to brokers of the ase. in turn the ase will allow ace’s members to use on-line trading facilities for commodities trading. it may be pointed out the ase carried out an independent survey for commodities trading and the finding shows that the proposed diversification is viable for the exchange. ten commodities including oilseeds, cotton, cottonseeds, castor, fennel, isabgol, rapeseeds have been identified by the exchange for trading. despite this decision to forge an alliance with ace, the ase has not ruled out the possibilities of additional joint ventures with other commodity exchanges. “we may consider the bombay commodity exchange’s proposal, if it provides extra facilities in commodities trading, in addition to ace,” mr shah added.
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Why Should You Invest in Mutual Funds?
When considering investment opportunities, the first challenge that almost every investor faces is a plethora of options. From stocks, bonds, shares, money market securities, to the right combination of two or more of these, however, every option presents its own set of challenges and benefits. So why should investors consider mutual funds over others to achieve their investment goals? Mutual funds allow investors to pool in their money for a diversified selection of securities, managed by a professional fund manager. It offers an array of innovative products like fund of funds, exchange-traded funds, Fixed Maturity Plans, Sectoral Funds and many more. Whether the objective is financial gains or convenience,mutual funds offer many benefits to its investors.
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Traders building bearish bets on Nifty as volatility expectations near all-time low
MUMBAI: Is the market poised for a correction? Some seasoned options traders, who watch sentiment indicators in equity derivatives closely, are building bearish bets on the Nifty as volatility expectations are near all-time lows. When implied volatility — a measure of traders' expectations of near-term risks based on options value — drops, it means very few traders are anticipating a drop in the market. But when implied volatility drops to lows, the experienced on Dalal Street see it as a sign of a possible reversal in sentiment.
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Stock Brokers in India
Choosing a share broker is one of the most important decisions you will make in your quest for financial independence, trading stock and opening trading accounts for investment. At Compare Online Broker our aim is to give our customers informed reviews, comparisons and incentives for open trading accounts. Our website provides authentic reviews of brokerages to make your decision to use a particular indian share broker transparent. In addition, we provide financial advice and incentives for our clients to better your chance for optimum financial success.
Each broker has unique traits to facilitate the movement of stock and trading. Our goal is to exploit those unique features and others to give you a better look inside brokerages, review market trading account information and make the best decisions for your finances. So don't wait and find the best share broker in India by comparing the various share brokers in India. We will also update our website with articles that will help you understand share market in India and how you can do online share trading in India.
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Mutual funds investment
3 Things you must consider while investing in mutual funds
Each of us is unique. And each of us has different financial goals in life. Most however, are unsure of fulfilling them due to a variety of reasons like insufficient accumulated money, shortfall through monthly income etc. So, there should be an alternative investment vehicle that helps us in achieving our financial goals. We should ensure that investment avenues that we choose for parking our hard earned money are diversified, easily manageable and mostly liquid in nature. One such investment instrument is mutual funds, where they diversify a portfolio by investing in securities (such as stocks, bonds, money market instruments and similar assets) that are easy to monitor and are liquid in nature. Here are three important things that we should consider while investing in mutual fund:
1. Selection:
Selection of mutual funds should be based on the investment objective and the time period required to fulfill it as a portfolio is built based on these factors. For example, goals like retirement, children’s education are long term financial goals which should have more exposure towards equities and less towards debts. While goals like buying a car, going on a vacation are short term financial goals which should be purely exposed to debt funds. One should also ensure that the funds which are selected should have a good history of returns and the risk involved in it shouldn’t be very high.
2. Review & Rebalance:
Tracking the portfolio is an important practice that every investor should commit to. This will make us realize where we stand in the progress of achieving the investment objective. Review and rebalance of the portfolio is done based on following triggers: a) Lifestyle: One of the reasons for lifestyle change can be due to increase of financial responsibilities. For example, post marriage, our priorities change which reflects in our investment objective as the short term goals might become long term goals and vice versa. According to the requirement and investment objective, the portfolio should be reviewed and rebalanced to get us maximum benefits. b) Job: Change or loss of job can have an impact on fulfilling our investment objective. For example, a foreign job opportunity gives us a scope to earn more than the existing, so we have more surpluses to invest. While in a situation of loss of job, we are left with a little amount to deploy on investments. So, in both situations, there is a need to review and rebalance of the portfolio. c) Performance: Performance of the funds would be known, when we review our portfolio regularly and we can take charge of underperforming funds by rebalancing it. By review and rebalancing we can identify money leaking points and take corrective measures respectively. d) Macroeconomic Changes: Macroeconomic changes can impact the returns on investment. For example, with RBI rate cut, there will be decrease in the rate of interest on the debt mutual funds. So, the portfolio should be rebalanced by shifting the exposure from debt mutual funds to other funds. e) Portfolio drift: Over time, due to volatility of the market the original allocations towards the portfolio may deviate, which will result in an improper mixture of debts and equities. So, there is a need for review and rebalance to build the portfolio as per the original investments strategy. f) When you are nearing your investment objective: The closer we get to achieving the stated investment objective, the keener we should be in reviewing the portfolio. For example, if we are about to reach our goal in a year then the risk exposure should be decreased in the portfolio. In simple words, the equity exposure should be decreased, as, one cannot control market movement and volatility.
3. Redemption:
Open ended mutual funds are easy to monitor and redemption is also very simple. However, the exit load period and tax implications should be considered before redeeming the funds. The process of redemption is simple, where we have to submit the redemption forms to the respective AMC’s (Asset Management Company) where our assets are under management. In case of no lock-in period then there would be zero exit load on us while redeeming.
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Initial Public Offering Process in India
As per the cyber rules of Government of India, this facility is not provided. Only in case of book building issues, the brokers can bid online on behalf of subscribers.
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Share Market BSE
BSE Sensex ends marginally lower on China stock markets crash; Nifty ends at 8,466; metal stocks slump
A fall of more than 6 per cent in the China market spooked investors sentiment on the domestic bourses on Tuesday as the key benchmark indices BSE Sensex and NSE Nifty closed 46.73 points and 12.45 points lower 27,831.51 and 8,464.85.
Also, market sentiments were dented after ratings agency Moody’s Investors Service revised its forecast for India’s economic growth to around 7 per cent this year from 7.5 per cent because of lower-than-expected rainfalls in the monsoon season further dents market mood. The weather department had said on Monday that India’s monsoon deficit has widened to 10 per cent as a strengthening El Nino weather pattern trimmed rainfall, raising fears of the first drought in six years.
Asian shares fell to a two-year low on worries that cooling demand in China will weigh on the trade-reliant region. The Shanghai Composite Index closed down 6.1 per cent at 3,749.12 in its biggest daily decline since July 27, snapping a three-day winning streak. Hang Seng and Nikkei also corrected 1.43 per cent and 0.32 per cent, respectively.
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online Share Trading
Equity Trading is not a game. Once you start getting yourself prepared for it, you see that it is an extended profession where the individual needs to know a few basics and risks associated with it before starting to trade on real time stock markets. Here are the 10 quick things to be known before investing.
Invest only the surplus: If you want to take a risk in the volatile market, invest only the surplus money which you can afford to lose in the market which will not disturb your daily living. Do not invest in the stock market by selling your existing assets, because as exciting as the prospect to earn more might be, the returns are not guaranteed.
Associated Risks: There are various risks associated within the stock market, out of which there are two primary points the investors have to take care and be aware of are
No guaranteed return: Though there are some stocks which have performed historically well over a long period of time, there is no guarantee that it will continue to do so or even the company will stay in the business.
You may lose money: Stock prices vary often drastically for many reasons with no pre indications. Especially when the trader has not planned for long term investments.
Do Not Time the Market: Stocks are long term investments plans with many short term price fluctuations. People might have heard in news that the stock price are climbing higher and higher in price. Prices drive even much higher when more and more investors jump in to buy these stocks. The prices start falling at much faster rate than they have raised when investors start selling the stocks to make cash gains from it. In such situations holding the stocks is better option, the prices may raise back soon. Investors are not going to lose money on the purchased stocks until they are selling them off. Often investors do the mistake of selling the stocks as soon as the price starts falling.
Learn the art – Technical Analysis: Technical analysis if a form of forecasting stocks on the basis of historical data and to analyse the tendency of these stocks to behave similarly over a repeated time period. Technical analysis works on the principle that the current market price is discounted of all the information known to all the traders or select few most active traders in the market, who has the access to the most privileged information about the market.
It involves the study of various parameters like averages, trendlines, oscillator, patterns etc. Traders who learn technical analysis can boost their financial status and be more confident about their decisions. Technical analysis is a skill that can be enabled with more and more practice on forecasting and having patience to get the results.
Paper trading: Paper trading involves the use of stock market simulator system with hypothetical account balance to trade in the securities, the trade is just on papers and involves no real money. There are companies like TradersCockpit, providing such services for those who want to try. Theoretically it gives best practice for those who are new for trading and to professionals a room to try out their new trading strategies. Trading in a simulated market has many benefits, such as
Observe the market behaviour with no cost and no risk involved.
Develop your own trading strategy, test it, correct it and retest it.
Rebuild your self confidence when you are on a losing track.
Discipline is key: Historically it has been seen that even bull markets have shown some panic movements. The volatility in the market has inevitably made the investor lose their money despite the bull run in the market. However the investor those have systematic investment plans, have discipline and patience in monitoring their portfolio have been able to generate great returns. Hence it is prudent to have a disciplined investment plans.
Risk & Money Management: For a trader money management is one variable that gives cutting edge to trade in stock market. Investors can not control the market spikes but surely they can manage their money in every transactions they make. A good trading strategy is worthless unless you are able to manage your money well, because a trader will be left with zero money to trade if he/she do not follow a proper money management techniques.
One of the best technique of managing ones money is by using the stop loss tool. It is most useful for those who will be unavailable to monitor their stocks frequently. It works on the principle of automatic triggering for execution of an order when the set threshold value of the stock price is reached. There are no hard and fast rules for setting the stop loss percentage value. This completely depends on the individuals style of trading. However it is advisable by the experts in the industry to keep a stop of not more than 5% for an active traders and not more than 15% for long term investors.
Hold Diversified Portfolio: An investor can be able to minimize the risk associated with the stock trading by holding a diversified stocks in their portfolio. One can diversify their portfolio in many ways like holding stocks of companies operating in different industries so that even if one industry is down performing other stocks in the portfolio will not be affected.
Keep long time frame: Stock markets are subjected to short term fluctuations and sometimes bear markets. Holding stocks for a longer time frame has always delighted the stockholders with great returns. Invest the money which you don’t need in the near future, because if investor sells the stocks when the prices are down they may lose the money. Hence it is advisable to hold the stocks for a longer time frame even when the stocks are under performing for a shorter period.
Remember a Stock is really a Company: Also the last but not least point is stick to the fundamental of investing, you invest in a company that will grow in future. Hence do not get gamified into stocks game, your money is invested on a real company, with real work. Hence do all possible diligence on the work of company, its future growth potential, growth drivers, and your personal belief on the potential of growth. Going by this fundamental you shall increase your chance of earnings from a stock.
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