Volatility in stock market is inevitable, so it is always better to plan for volatility instead of panic selling. Below are the few steps to beat the volatility.
Always select the Fundamentally Good stock:
Many of the new Investors select the stocks based on tips /suggestions, But it is always better to do you own research before selecting any stock, If you are investing any stock make sure that you read all it’s financial statements and understand their business. First invest on your knowledge.
Booking partial profits regularly:
Many people confuse with profit booking, some people tend to sell the winner stock and hold the loser stocks, Based on you knowledge it is always better to book some profits after some long run like more than 50%, 100% , Never exit the position fully, Book partial profits.
Diversify your portfolio enough:
Along with diversification Capital allocation is one of the main thing, If you holding 10 stocks, one of stock is having more than 60% allocation this doesn’t work, If you are having so much confidence on than stock then you can give maximum 20 to 30% of allocation. And choose other diversification options like gold & Crypto currencies as wel.
Never Invest all money at once:
Instead of investing lump some money at once try to invest in trenches or follow the SIP, this way you are not putting your all money to risk, and while withdrawing also follow the SWP unless you are withdrawing for some goal.
Be an Investor rather than trader:
In Bull market, many new Investors will become as traders, they try to sell some holding and buy some other, this way sometimes they loose quality companies, remember no one can time the market so , Hold the stocks as long term Investor.
Increase you position rather than panic selling:
Many retail Investors tend to panic selling which keep them in losses, but we need to take this as opportunity, for that you need to build your mindset, If you do own research on the stock you selected you will get the confidence to increase your position and remember never catch the falling knife, means never add the stock when it is falling, try to add it when it is showing some recover/regain signal.
Please FOLLOW US, SUBSCRIBE and SHARE this article with your friends. Learn and Grow with us.
If you have any queries feel free to contact us.
Thanks and Regards