Learn A B C D E of Stock Market
Stock market attracts novice as well as experienced traders and investors. However, trading in stock market is not easy. It requires significant knowledge and study to make money in the market. We at Nifty Trading Academy, share with you the basics that you should learn about thestock market.
A stands for Analyse. This means you must always analyse the stocks before investing your money. Do a good study about the company in which you are planning to invest. Study the EPS, PE ratio, fundamentals, future outlook and other factors of the company. In addition, always analyse the track record of the management and how efficient they are. To sum up, right analyses of a company will always result in higher returns for your investments.
* Bullish / Bearish
B stands for theBullish/Bearish market. Besides, analysing the company, understand the market trend. If the market is in bull phase i.e. in anupward trend, it is good to purchase stocks or book profits in the stocks which have reached new highs. In contrast, if the market is in bearish phase i.e. in adownward trend, it is good to book profits or make short positions. In conclusion, it is always a good strategy to take position according to the phase in which the markets are.
C stands for Control. It is essential to control your emotions when trading in the stock market. To put it another way, an investor should not get carried away with the momentum in the market. The investor should avoid selling a stock when there is panic in the market and stocks are going down. Likewise, the investor should not indulge in overbuying or blindly buying any stock when the markets are in bull phase.
D stands for disciplined investing. In comparison to other investment avenues, investing in thestock market requires a lot of discipline. Only a disciplined approach and meaningful strategy can help investor earn higher returns. Therefore, holding the right liquidity in hand to purchase the stocks during fall in the markets is the best approach. Likewise, timely booking profit is consideredas a good approach.
E stands for Evaluate. You must evaluate your investments and monitorthem regularly. Enter the stock market only when you can spare time to check the health of your investments at regular intervals. Periodic monitoring helps in framing the right strategy and grabbing the right opportunity in the stock markets. Instead of forgetting after investing, it is always advisable to evaluate the current position in the market.
We Can Help You Learn the A B C D E of Stock Market?
Learn the basics of the stock market with Nifty Trading. Our articles and blogs will help you gain knowledge and understand the basics of stock markets. Learn about the fundamentals of the company, chart study and other technical parameters before purchasing a stock. Visit our website and read our blogs, articles to know about the important concepts of the stock markets. Being informative always helps in making good returns in the stock market.