HOW TO AVOID LOSSES IN THIS UNCERTAIN & RISKY MARKET

HOW TO AVOID LOSSES IN THIS UNCERTAIN & RISKY MARKET

1) Somehow our market has become very dependable on other markets in spite of the fact that our economy has strong fundamentals, great PSU and private banks, many of our companies have posted good quarterly results, government has given good industrial projections and yet we always look for clues from other markets, like a dancer who is not sure and watching other dancers' stepping, to perform for himself.

2) Luckily our market has the geographical advantage, that is
(i) Our market opens after American market closes
(ii) Our market opens only after other major Asian markets opens
(iii) European market opens couple of hours before our market closes, so we do get a direction from European markets that how our market will perform in the crucial closing hours. Therefore, we do get an idea of shape of things to happen in our market.

3) No body can teach you stock-marketing. One has to learn it himself from his experiences in the market.

4) Never think the other person is more intelligent than you to give you tips and kind enough to make you rich.

5) Don't participate in the market every day. Beginners should participate in trading only on clear days, that is,on full GREEN days, especially the US and other major Asian markets.

6) These days there are no investors, there are only traders so market is also behaving exactly in the same way, so,never take any kind of trend for granted to last long, you never know what the next day has in store for you.

7) Never hope. Be practical. Buy when everybody is selling and sell when everybody is buying.

8) There are some stocks like Kwality Dairy, which perform well when market is down. Do invest in such stocks which have proven record of performing in volatile and negative market situations.