Saturday, November 8, 2014

equity shares involves high risk but right analysis needed

                         are equity shares high risky?

equity shares riskier but unless you don't design good portfolio because only diversification of your investment can minimize risk and gives additional protection on your investment, most of the time chances to gain profits either a) Day Trading
                           b) Short Term Trading
                           c) Long term trading 

            equations are needed to fallow everyone before doing investment

       1)   If you take high risk = high profits/ or high loss, security on investment is low
        2)                     low risk  = low profits/ or low loss, security on investment is high

  in the above you can clearly understand how investor need to approach while doing investment so options many but  buying right stock at right and at time of course and if the person who takes the highest risk then profits/losses will be high  and security remains low but in situation two entirely different the person who takes the lowest risk then low profits/low loss will be generated and security remains high. 

                      clear direction on equity shares 

                  you can clearly understand how risks can generate profits in different levels at the same time we need to remember diversification of investment is very essential on equity segment. here listed things need to fallow every investor.

1) Choosing the right script:       

 in the stock market where the number of companies are listed on different stock exchanges and the number of advisers likes to give suggestions on your investment but one need to spend minimum time for doing self-verification for choosing the right stock at right time and right situation. 
   note:          under equity segment trading Group A and B shares are very important in order to minimize the risk  because there will be number of buyers and sellers on that counter so you can take price advantage for booking profits in short time.

2) Prepare to  invite risk:   

      One need to understand on stock market that always not possible to gain profits some times you need to book looses too so preparing risk you take on every investment on every trade do on stock market. 

3) Design nice portfolio: 

      always one need diversify your investment on various sectors and select preferring nice stocks from the different sectors here you can minimize the risk and chances to maximize the profits. 

4) Evaluation of your stocks:  

most of the time you spend to evaluate the performance on your stocks the more you gain from stock market because regular evaluation need to be done by investor in order to make success at least spend time every 3 three months once will be better for long term investors. 

5) Book your profits:  

booking the profits around 18% is idle on stock market even if your expecting more then your inviting trouble on your side and if your looking forward long term investment then you can do further research where up to takes support on stock.

6) Stop loss: 

 stop loss is very important that because limiting looses at one level but many experts put different stop losses according how they accept the risks.

7) fundamental analysis:  

fundamental analysis is very necessary on trading shares because it involves basic reports from company  profile,details,income statements and position statements etc.

8) Technical analysis:  

Technical analysis where you can do research where stock takes support and resistance levels and how it will behave next coming days stock market so price movements can gazed easily on stock market.

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