tips for volatile markets
Top 10 tips for volatile markets
Some tips for Trading in Volatile Markets
- The most important thing: believe in the market and go along with it, never try to Predict the market.
- Pick a stock based on its future potential do not give undue importance to P/E,EPS etc
- Technical analysis works for a very short period and in a stable market
- Learn to book profit in a very strict manner and more important restrict your losses within your bearable limit with strict stop-loss.
- Never buy a stock because of a news or recommendation on TV,MEDIA as positions are built in same stocks prior to releasing the news in media in most of the cases,
- Build a wholesome portfolio so that loss will be minimal if some pick goes wrong. Never invest more than 10% of your investible fund in a single stock and 25% in a single sector.
- Invest 50% in large cap, 35% in midcap and rest keep rotating in intra or positional trade.
- Learn the art of portfolio churning at regular intervals as per your investment style and after a major event like Budget, Election etc.
- Never overtrade in margin. Ideally not more than 10% of your capital is deployed in margin trade in volatile times like this.
- Invest in sunrise sectors in 2010 like logistic, media, power, allied-infrastructure and so on
