One could say that under such volatile market conditions investors have resorted to hiding behind the cape. Whereas, active investors are looking for investments that come with low risk but offer high returns. With stressed trade relations among countries worldwide, the Indian stock market has been seeing a lot of red marks recently. Such a decline has altered not only the investment amount but also the investor’s mentality.
Low-Risk High returns?
For most of the investors,this may seem like an impossible phenomenon, but it is possible. Due to the strained market conditions, seasoned investors have come up with a trading strategy which can actually get you better returns. The strategy starts with a simple process, i.e.tracking. To get good returns you have to observe the market carefully track the best or the stable performing sector. Once you have found your suitable investment option, you need to calculate the necessary amount required for investment.
- Stop-loss: Stock market investments are prone to risks, these risks are caused when companies perform poorly in the market. Though minimal, they can hurt your capital. To stay safe from such risks you can purchase a stop-loss A stop-loss contract is like a loss barrier which keeps your capital protected by selling the stock before it touches the bottom line.
- Loss accumulation:For favourable returns,you need to keep trading actively, this keeps you updated with the stock market trend. Moreover, you get to know how your stocks are performing and when is the right time to sell them. Many investors pay heed to their emotions like fear and greed rather than consensus or logic. Such behavior results in the mounting of losses, which is harmful for an investor’s portfolio.
- Invest smart: Some investment options offer high returns and the same time come with high risks. Investment options like penny stocksbear prices as low as INR 50 and offer huge profits while government bonds or CDs have high prices but also offer high returns. The difference between the two is penny stocks are highly risky, whereas government bonds are safer.Hence, it is important to choose your investments wisely.
To make the best out of stock market,you can take the help of top online stock brokerage firms like Prabhudas Lilladher that offer tips and advises for a profitable investment or you can refer the nifty option calculator to secure the returns.
For more relatable stock market advice: [erforms id=”763″]