Investor Strategy in Stock Market

Hello Again,
There are some points that investor has to keep in mind. Those are -

1. The stock market is all about the ups and downs.
2. Control your panic mode in down stream.
3. This involves risk and all investment is monitored by you (investor). 

         So, if you loose money that's your fault.  The money is not easy to earn and making the money to work for us is the hardest part. So you need to do some research because you will not just blindly gave money to someone.
            "Stock market is the hardest way of earning easy money" I heard this some where and that's true.

Strategy of investor -

1. Put all the money in a stock which he think is better. Well to find that stock do some fundamental and technical analysis, I will come to it later. and then wait for the profits.
2. Divide investor capital in two parts. Invest one part now and keep second part to invest when there is down fall in market; this needs patience. This will make the average price to come down.
3. Third one is different, let's assume you buy a stock and it breaks the top. It is moving up, so investor will pour more money. This will happens several times, but doing this will result in the average buy price will increase that's no an issue but in down fall the investor must book the profit as it breaks the support.

         First strategy looks ugly, second one is good but the third one is smart. I will prefer third or second.

         Well let's combine both 2nd and 3rd strategy. The combined strategy will be -

• Make two parts of money. One to invest and one for down fall.
• let's assume you will have some amount in 3 months of period to invest. Purchase the stock in every 3 months of period if it breaks the resistance and book the partial profits when it breaks the supports.
• At the last wait for the downfall buy at every down price from the money you saved for the down fall.
• This will gave you better chance of profit booking and having the stock at lower price.
• Here you have to monitor where your money is flowing.

     We, got the strategy. Now there is a term Diversification.
Diversification means Divert the money in stock market. The ways here are sectors like banking, IT, technology, beverages, automobile, FMCG, etc. Divert the money into these different sectors so that your investment will stay protected. One sector may be in loss but another one will balance it. Diversification is must or you may end up loosing the money.

Two things here Diversification and Investment strategy. When everyone one is booking the profit, that's the perfect time to buy, please never forget it.

Tata... See you later