STOCK INVESTMENT STRATERGY WHEN STOCKS FALLING

It is an old saying that every storm does not last forever. It is all true for the stock market which is now in a bearish mode. From the last half an year all the indices of the markets from all around the world has come across a double digit correction. The stock prices of the various blue chips stocks are around the half the value of their usual value.

It was October 2008. Everybody was looking to get as far away as they could from stocks. Not only the stocks, but also anything that is remotely connected with the stock market like ulips and mutual funds.

But while everybody was busy getting out of stocks, one person was busy putting all his money into stocks. And this person was none other than the legendary investor Warren Buffett.

You can also a return on your investment in the stocks like that of 150%, 200%and much more.

The same is the scenario at that time. Every investor whether with a deep pockets or one with smaller amount to invest is in a state of fair. Some even are exiting the markets so as to not to make further loss.

But this not the way to do with your hard earned money. After 2008 financial crisis when stock market recovered and share prices rises who earned from that rise in prices.

It is well known fact that markets will give you sure and good return in a longer turn.

But also every stock have not given a return or even has not risen.

You have to invest your money in small amount at all levels and also that too in selected stocks.

Invest only in fundamentally strong companies and they must have surplus of cash in their books.

Invest by this strategy and see your investment after sometime will yield double returns surely.

MAKING MONEY BY STOCK TRADING SURELY

Everyone who having a demat account tells the same story of loosing the money in the stock market. They all always ask his financial advisor the way of making a sure short money in the stock market. But the same suggestion not but become a long term investor and so and so.

You can not follow the policy just investing and hold it for a long

But the money is like your child, no one in the world thinks of leaving his child after birth to grow up on his own and they do not even think of forgetting the child.

The steps to successful share investing are:

Buy quality shares don’t go for penny stocks buzzing stocks

Select the share depending on fundamentals

Keep in mind the future of the industry

Don’t buy more in panic if share prices slides down

Keep a track on your investment and the economy

Hold it for more than one year so as to get tax relief

If there is a sudden serious problem with the company don’t hesitate to exit from it and if it seems stable after sometimes then make a comeback and stick to your plans

In you making a handsome on any script book the profit at go and enter again at lower level

By just following the simple ways provided above it is sure that you will make a sure and handsome return on your investment in the stock market. There is much more to know for becoming   a good stock investor. Keep reading my new post to become a successful stock investor. Bookmark the blog and keep checking updates.

  

What to do When Stock Market is Falling

There are rumours all around the globe of another economic slow down like that of 2008 because of debt crisis in Europe and America. Because of this fear of economicSlowdown, each and every investor is filled with fear “how to approach further to his investment plan”. Here in this article I am going to help you how to act further in your Financial plan to achieve your future financial targets

The present situation is a cause of concern for the whole world. It is hot topic which is being discussed among at various places and time. Is world is going to see another situation like that of 2008 crisis which are triggered by the meltdown of America (lehman brothers and others). But know the situation is even worse than that in 2008, at that time banks defaulted and government came out For their bailout but in present scenario it is government which is at a verge of defaultAnd if a country’s govt is not able to the loans or debt taken by him from people than in such time who is going to come with a helping hand for the government.

Markets all over the world have fallen near about 20% in last one year period and even at that levels there are not even a single sign of relief that is they are going to hold at that level and not in a mood of further correction. In such time when stocks are available at cheaper levels how an investor should react in such a situation because no one can judge the markets.

The risk and reward ratio is always their and it is true that
When you strict to stock market in bad times you will get rewarded handsomely. Invest at present level small portion of your wealth at present level and wait for another 5-10% drop in index if there is further correction. Investing at present level is helpful because if markets recovered from present level in other words markets had hit its bottom and one could come with a hand full of profit.
Financial planning consists of various steps which one follow to achieve his goal of wealth creation though planning and decision making at right time. First step is to take a adequate amount amount of insurance cover for you and your family. Their after invest a fixed amt in stocks or mutual fund through sip. Invest in a diversified portfolio consisting of different asset class including precious metals like gold, silver or in etf. How to tackle in such a situation keep reading my further up coming articles.