Wednesday, December 19, 2007

The Market, The money and you

As I am writing this article, the sensex is climbing up or going down...
This is the volatility that is going on these days in the market. If the market is volatile we can earn a great deal out of it and its not the time of longterm investment. The volatility of the maket these days is evident from the fact that a single stock is changing upto 43% in a day.
The two most voolatile stock in the market are RNRL and Essar Oil. Relianace group stocks and the Indiabulls stocks are these days the best stocks for intra day trading as they are changing each day. If a person wants to earn some money out of the market, the time is ripe now.

But on the other side of hedge stands the losses that they can incur to the retail investors. if the stock is going down a retail investor has a proclivity of keeping the stock thinking that it will come up again. But this kind of penchant is not doing any good for the retail investors at least. If a stock is going up you should sell that stock if you have earned your pre-aimed interest negating the brokerage and any other expenses you have taken. And when your stock is going down buy more of it at lower cost(except if you are a long term investor and the stock is of very respected company). Though the scenario today with the retail investors is that they buy a stock that is going up and after which it goes down.

The stock market is kinda arcane temple from which you can get a profit that you are not expecting but also you can loose your money in a snap. nobody can tell you when its gonna rise and when its gonna fall. But you can predict upto some extent.

At last I want to put up like this "Don't try to get the maximum profit but a pre-aimed profit".

N.B.: If you are puttting your money at stake please keep a track on it through ET or BS.

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