Monday, November 11, 2019

Investment planning in Stock Exchange

How to make Investment planning in Stock Exchange:


In the stock exchange there is highly probability of loss rather than profit if your investment plan is random & aimless. To ensure the safety of invested fund in the stock market some investment planning techniques should be kept in mind:

  • The foremost thing is that you must have idle money if you want to invest in the stock market. If you think you will earn your livelihood through the profit earned from stock market then stock market is not for you. You must have your own idle money better not from bank loan.
  • You must have your aim to invest in the stock exchange. What do you expect from the stock market? Monthly profit? half yearly profit? Yearly profit?. You must make you mind prepared how much loss you are going to accept yourself. Share market is not the place to run your your family member due to its fluctuations.What will you do with the earned profit should be noted.
  • To be honest share market is not the place for short term investment. You may gain temporary gain from short term investment, but there is high probability of risk. So you should consider moderate short term investment (less than 3 years), Mid term investment (approximately 3-10 years), longer term investment ( over 10 years). The more the term the more the profit.
  • It is very crucial to estimate the level of risks you are going to take. Finance says the more risk the more profit. Risk taker usually not interested to Govt. treasury bond which are free, rather they buy some high value, fascinating & potential growth share where they can earn twice or more profit than the treasury bond. So keep this point in mind.
  • keep your sharp eyes on the percentage of profit or loss you can bear. You can target 10%-20% profit from your share. When your target price comes then quickly sell the stock. On the other hand don't forget to set Stop-loss. If your share price falls below 10% or 20% then you can follow the stop loss tactics. 
Technique to find growth share
Technique to find out Growth less shares  

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