Thursday, December 4, 2014

CURRENT SITUATION IN THE STOCK MARKET.(Part-1)

Right now indian stock market is trading at all time high powered by selected blue chips(For instance Maruti,TCS,etc.)

Question arises what is next after this rise?

Well the simplest answer i can give to you all is that after every rise there is a fall and yes a fall in the markets is imminent because without a fall old investors cannot exit and new investors cannot invest in the market.

The thumb rule of stock market is to invest when all markets are down and to sell when markets are up.

How to save yourself from the losses?

Always invest after seeing the past price chart of the scrip which you want to buy.Never believe what others are recommending be it on business channels or any tip given to you by your friends.
Though you can consider their advice but always have a background check to be at a safer side.

Also,investing in stock market means investing in equity which is 100% riskier than any other asset classes.

Never get yourself trapped in the stock manipulations by many traders.
(For instance when a big investor buys shares which is more than 1% of stake and it get flashed on T.V ,you  will definitely want to buy that scrip too as you must be thinking that he must have found something good in the scrip.But this is always not the case. The person may be buying the scrip in one go but may be selling when scrip moves up significantly in a short period and selling in small quantities without being noticed by the public and making profit out of it. So always apply your mind when buying scrips specially small caps .)