Monday, April 22, 2024

Easy Steps to Trade Smartly in Indian Stock Market


There are some simple steps involved in intraday trading that make you an expert stock trader in Indian shares market.

Step 1

Think different from the crowd. Being a contrarian investor make you stand apart from other investors. As an expert Indian stock trader Aditya Khanna says: “The time of deep crisis is a good opportunity to invest in the stock market. You buy stocks at cheap price. And when there is long haul of price rise then correct time to sell.”

Usually due to pessimism stock traders shy way buying shares during crisis but contrarian trader is smart and pounces on this timely opportunity to buy big companies stocks at cheaper price.

Step 2

There is no stop-gap arrangement approach in stock trading. Do not attempt half-hearted stock investment on an ad hoc basis. You cannot sustain the fluctuating market. You need a robust financial plan  specifically designed to meet your desired goals. This plan must include your future projections and allocation of funds across different stocks, based on various sectors you plan to target.

Do not blindly follow your friend’s advice. Do not Invest in to something because you find sudden interest shown by masses for certain stocks.  Contingency driven break your financial plan. Your plan is prepared after deep analysis and historical data analytics, do not make unplanned investment in stocks.

Step 3

There is alternative view point to above step. Whenever you receive suggestion to invest into some stocks, always make it a habit to do in depth research on your own. You can take inputs from stock market experts. Get at least 5 to 6 expert people’s opinion and use news portal to understand the market sentiments. Seek advice from relevant experts. If you are pro bullish then ask for advice from bulls.

Step 4

Do not over expose your investments to volatile stocks. Include comparatively safer investment options – such as mutual funds, corporation bonds, government bonds and index funds – as part of core portfolio. They may not give you higher returns in short time but they are safety nets because they are considered as secured investments.

Step 5

Most successful diversified investment portfolio includes index funds. Popularly it is believed that investing in an index fund may not return high profits however it is good in maintaining bottom performance, give you top performance.

Second factor of investing in index funds is, comparatively they are cheaper than other speculative stocks. Average fund managers do not out-perform market; this is seen across globe. Different market researches revealed that very few active fund managers actually perform consistently outdoing market expectations. With an index fund as addition to your investment portfolio, you take a smart decision, most likely your fund would do better than the average managers. That too at lower cost input. However, like all other types of stock products, you need to fully understand nuances of index fund before you invest.

Follow the steps to start investing in stocks as now you know how to do trading smartly in share market.

Trey Rory
the authorTrey Rory