Investments

What Points to Factor in for Profitable Stock Investing?

Stock trading is considered a risky investment ploy by many investors. However, this need not be the case if there is some research done on stock trading. With basic tips you can get better returns from stock market investing.

The main reason why investing in Sensex makes for an appealing investment strategy is because phenomenal returns are possible. This type of profitability in still unmatched by any other form of investment. It is equally true that going into the market without proper knowledge can harm your potential.

There are many tips provided by investment pundits on how to extract good returns from Sensex. The fact remains that we need to be judicious enough to know when to implement these tips in order to make the stocks work in our favor.

Here are 4 essential points to note –

1 – Be skilled in investing

With Sensex, the trick is to get in and get out quickly. This is a vital skill needed to leverage the fluctuations of the stock market to make it work to your advantage. It is a skill that comes with experience. When you know how to time the market, you can be assured of long term gains from this form of investment. No matter how many seminars or courses you do, the practical experience will always triumph theoretical knowledge.

2 – Knowing when to act

What is the typical tendency of a person when he has a stock that is witnessing an upward surge? He will obviously hold to it to wait for its price to rise further. However, you need to know when to get out of the market and still not incur losses.

Now for the same person who kept holding to the stock, he will panic when Sensex market corrections occur, and prices start leveling back. He will try to sell it and eventually incur a loss on his investment. He would’ve made a better profit if he had sold it when the prices were high.

3 – Know when to trade for better results

As any good investor would know, the share prices of any company’s stock undergoes rapid movement. It keeps getting updated every single second. Hence, we need to know the good timing slots to trade in the stocks. Historically, it is seen that the timing from 9:30 AM to 11:30 AM is a great time to trade in stocks as anything later, and the market becomes volatile for the risk-averse investors.

4 – Work with reasonable volumes

Many investors try to work with stocks that have just 10 to 20 shares at any given time. Experts recommend that we need to look at only those stocks that trade at reasonable volumes daily. A good ballpark would be those stocks that have a daily volume of 500,000 shares trading on the Sensex or Nifty. Those who have just started with stock market investing can look at commencing with a Nifty stock.

These tips would surely help you gain a firm footing in the competitive Sensex or Nifty. Do let us know if you know tips for extracting better returns from stock market trading.