Investing in the stock market is quite easy, But difficulty is earning money in the stock market and making a good profitable portfolio. Before that we need to know a little bit about the stock market and investment. Stock market is a place where companies sell their shares publicly, here anyone can buy and sell shares intraday and also long term. When you invest in the stock market buy shares of any company you become a shareholder of that company. And as per company value increases your share value also increases. And you will also receive a dividend yearly and quarterly as per company T&C.
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Before investing in the stock market you should know about some strategy, so you will manage your risk and also manage your loss. In this article we will discuss the top 5 strategies on how to invest in the stock market.
Top 5 Strategies for investing in the stock market.
Strategy 1 : Research about company
Before investing in any company you should research about that company, Company valuation, yearly revenue, quarterly revenue, compare previous year revenue with current year revenue. Check the profit of the current year compared to the previous year.check about company management team, check about loan, who will invest in that company, and also competitor. This small research will help you to make decisions about whether to invest or not in this company.
Strategy 2: Risk Management
Risk management is the very important factor to invest in the stock market. You should know about this risk management strategy. Risk management is a key factor to help you to reduce your loss and also it helps you make a good portfolio. Risk management means you need to invest in different industries with different companies for the long term. Because intraday there is heavy volume, so as a beginner you will receive loss , it’s better to go for the long term. Next step we will discuss long term investment.
Strategy 3: Invest for long term
As a beginner you should go for the long term. Invest in the long term. You will research once on that company before investing in stock after that you just hold it. then your portfolio will increase day by day as per company wealth increases. And you will receive a dividend yearly; it should be a passive income for you. Investing in the long term is low risk, so your capital saves with making profit. But if you go for intraday and future & option you should learn 1st then you go for intraday.
Strategy 4: Emotional decision making
As a beginner when you enter the stock market you have lots of emotion for making profit, but when you receive losses on your portfolio you exit, after that again & again you take lots of time to trade for recovery loss. So don’t make any decision emotionally. Before investing in any stock in the long term or intraday you should research and decide your stop loss and target. When the market will touch your target you need to exit or trail sl, or if the market going to your opposite side market will hit your stop loss there also you need to exit. This is the important strategy professional investors do. So don’t make decisions emotionally. I repeat don’t.
Strategy 5: Update news about stock market
Always stay updated day by day with news of the stock market.its very important and it will impact deeply in the stock market. Any of important news like corona, budget , war etc it will be anything so you should be update regularly about stock market news and events. It will help you make decisions to invest in the stock market.
Note: Read once again all strategies that will help you invest in the stock market.
There are various types of strategies in the stock market that you can use and make profit. We are discuss Top five Strategies for investor above of this article those are research about company, Risk management, invest for long term, emotional decision making , keep update about stock market. Each strategy has its own benefits and risks.
Value investing is an investing strategy where investors buy stock with long term growth.
Growth investing is an investment strategy where we research a company. If that company has strong growth potential in their earning and revenue, we choose that company for the long term.
Income investment is an investing strategy where we can generate regular income through dividend stocks, or fixed income securities.
Index investment is an investment strategy where you can invest directly in India’s top 50 companies, or the top banking sector etc.
The best strategy for you depends on your investment goal and tolerance of risk.