How to reduce risk in investment
Many people nowadays Stock market I have started investing money. If someone comes in the hope of earning profits, then someone invests only by looking at others. But one thing that many people ignore is “risk” means the danger of loss. The stock market is not such that you will benefit every day. Unaware is very common here. Just as share prices go up, in the same way, suddenly suddenly it can fall down. And when falling, the direct effect is on your money. This means that the more profits can be made, the bigger the loss can be.
What is a risk factor in the stock market?
The risk factor in the stock market means how much damage can be caused in the money you have invested. The market continues to grow every day, the prices of shares, mutual funds and derivatives vary continuously. Due to these ups and downs, the value of your money you can also be reduced.
If the market falls, then the price of your investment also decreases. This is the real risk of the stock market. For example, suppose you put ₹ 1,0000 in a share. If the market goes down, then your amount can fall to ₹ 8000, ₹ 5000 or sometimes ₹ 3000. In such a situation, if you have put money without thinking or without knowing the risk, then you may have to suffer heavy losses.
Put money in different places
Do not invest all the money in the same share or the same sector. Just as all the items of the shop do not keep them in the same bag and keep them separate, similarly divide the investment. If there is a loss in one place, then something can be managed from another place.
Come on with a stop-loss
This is a way by which you can decide how many losses have to be sold to your stock. For example, if you have bought the shares for ₹ 100 and decided that you will not let below ₹ 90, then the loss will not be much.
Take a decision thoughtfully
Many times in the stock market, people come under fear or greed and take wrong decisions. If someone said that this stock will definitely increase, then people invest money without checking. Doing so can be dangerous.
Invested money only after research
Take information about the company in which you want to invest. It is important to know all these things what the company works, how much is its profit, what is the performance earlier.
Avoid trading throughout the day
Many people start playing the stock market like gambling. They are engaged in purchase and sale throughout the day. This increases the chances of damage. It is better to do careful transactions once or twice a day. Do not hurry
Keep long distance thinking
If you have come to the market to earn profits immediately, be careful. The real advantage in the stock market is when you invest for a long period. The market is handled over time and the loss can also be compensated.
Disclaimer: This article is only for information and should not be considered as an investment advice in any way. TV9 India suggests its readers and spectators to consult their financial advisors before taking any decision related to money.