Investing in equity is not an easy job. You need to careful with your hard earned money. Read more on how to avoid losing money in equities.
While equity markets offer enormous investment opportunities, the prospects of enduring heavy stock market losses always tend to linger around. This is particularly true for individual investor who can find the wavelike patterns in stock prices and the generally volatile nature of the broad markets unnerving. However, keep in mind that stock markets move in phases. It goes up during one phase and comes down during another, depending upon a combination of factors and even the best online trader can find himself or herself in a tough and testing position in certain times. This very nature of the markets therefore makes it essential that an investor should be to try and to minimize the losses. By following some simple and effective rules, one can ensure to avoid making heavy losses in stock markets.
Here are a few useful guidelines to help you become a disciplinedinvestor.
1. Observe the primary market trend: As an astute investor in financial markets, it is important to segregate between the various trends and learning to adapt to them in the right manner. Primary trends indicate the basic direction prices are onto and are largely driven by a combination of fundamental factors like economic growth and corporate performance. Secondary trends are normally corrections in the primary trend and as such will not affect the long term investors much.
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