While taking Equity Market in to consideration the main thing to be noted is the risk.
This land will allow you to face both the risks and gain. Both risk and gain will go hand in hand. In case if investor thinks gain is a good thing and risk is a bad thing he is not a right person in staying in this field. It is clearly understood that investing money on Equity Market is a risky thing but in par with this building a stable portfolio will make you to minimize the risk. While investing in the Equity Market the various types of risk are involved in the trading but if you are getting the proper Equity Tips for trading the risk factor will be reduce to a great extent.
There are some risks involved in Equity Market Trading:
• Industry Risk
• Political Risk
• Company level risks
• Financial risks
• Interest rate
• Inflation risk
• Dependence on the economy
Methods of risk free Equity Market Trading:
The ultimate goal of making an investment is maximization of wealth. To achieve this, it is important that the investor gets a rate of return on his investment that exceeds the rate of inflation and is able to meet his long term objective. This is possible when the proper planning and time is given for the investment. Fixed income investments like bonds and fixed income funds offer returns that are no doubt certain and consistent, but their returns are not enough to meet the long term return requirements and sometimes the returns are even less than the rate of inflation. At these times to attain the long term goals of the investors and to beat inflation it is essential to invest in equities. And for this the proper Equity Tips are also very necessary. Equity as an asset class have constantly helped investors to grow their capital much faster than inflation over time and also attain their long term goals, even after factoring in periods of sharp falls.
It is also advisable to select a company with high sales and a long term growth rate and compare the profit of company with Net worth before buying shares. Stock markets tend to take wild decisions in the short run but behave rationally in the long term. Successful investors always base their investment decisions on a shares’ intrinsic value and hunt for bargain stocks. They will buy shares of a company with strong fundamentals when it’s beaten in the market and sell when prices surge.
Mistakes to avoid:
• Don’t be overconfident
• Don’t put your emotions
• Don’t set an amount you can afford to lose
• Changing plan during market hours and not following your strategies
• Trading Blindly on friends and relatives suggestions