The start of the week has been a bit volatile with benchmark industries starting good and gaining some ground in the market, then losing some ground only to gain again, although the market closed with a little bit off or lower than the highs of the day. Bank Nifty was one of the underperformers today losing about 0.7% while IT and pharma companies did quite well. As of yesterday yield on the Indian Bond remains the same at 5.88% and the Reserve Bank of India RBI is said to be converting shorter-dated government debt into long tenor bonds. India’s forex reserves have risen to 572.8 billion dollars as of November 13th which is a record high for the country.
When we give our readers insight into the daily stock market or benchmark industries that are doing well and those that are not meeting expectations in the markets regard, what we want you to know in essence is underlining the facts and figures needed in helping you build your investment portfolio. With that, the article is going to be talking about a few trading tips on the general side of trading which is advantageous for individuals who like to diversify.
The Stock Market is by no means difficult if you are dedicated to your investments, it is something which occurs in daily living, buying and selling, trade by barter, we have all performed some sort of business transactions at some point in our lives but this time what it revolves around is Stock. Every person would like to invest wisely, here are some of the mechanics of trading you need to take note of:
• Research and advice: how do you go about the proper research? Here is what you do; Review the company’s financials by identifying its sources of income and how cash and revenue are handled, also by checking up on its quarterly updates on operations and financial results. Then you look at it with the view of owning the company yourself, ask for advice from people who are very deeply involved positively in the investment world, how good is the management team? what competitive advantage does the company have? What could go wrong? Remember, you’re not just buying into the company to raise its stock price, you are doing it to stake a claim in it and get your slice of the pie.
• Draw up a map of your goals: Sit down, assess your financials and evaluate the degree of risk you can afford because there is no sure guarantee that you’ll make money from your investments unless you make an intelligent plan. As the saying goes, if you fail to plan then you may as well plan to fail in this regard. Some people do this professionally, if you feel it’s too cumbersome then get help.
• Consider Diversity: Yes, we know everyone says this, but truly why would you put all your eggs in a single basket?! When investing, don’t lean heavily on one stock, consider an appropriate mix of investments. There are three major asset categories you can invest in, stocks, cash, and bonds. Just investing in a single asset can be detrimental and opening you up to big investment risks.
• Fraud: Do your best to avoid circumstances that can lead you to fraud. Scammers also read news headlines to look for more ways to improve their so-called opportunities. Simply put, if it seems too good to be true, it most likely is.
Watch out for the next post speaking on trading tips, you may gain a thing or two!
