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Make money in Volatile market using little wisdom that you have

Tuesday, June 23, 2009 | Labels: , , | |

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Making money is in volatile market session is very hard. We are weaken day by day, as our money changes hands from our to another.

As stock market is bouncing like With the stock market bouncing like a pinball in recent weeks, investors' anxiety is growing.

In this time where no one guess bottom and top of market. One has to come in market with very specified strategy.

This statergy is depends upon your role in market.

Your role may be
Trader
Short term investor
Long term investor


As role of Trader
This market is very good source of earning for trader. If he will able to ride on right waves of market, one can make good money else it is disastrous for your bank account.

Precaution for trader for volatile market.

  • Do trading with minimum quantity. Avoid big position,rather than big position make frequent trade.
  •  
  • Book profit early than up trend market.
  • If your not able to catch right waves then use stop-loss to minimize your loss.
  • Wait for some time if your decision start to goes wrong. Every script or index change trends after completion of current trend.  Get on the right side of major trends
  • Only take postion when you fill easy to achieve your goal i.e. earn good profit.


As role Short term investor


  • Diverisify your portfolio






  • Find right valuse of your stock, if it looking over valued avoid it.





  • Get on the right side of major trends. Avoid such stock which look fair and stop at support level, they may fall further.





  • If you are stick to any loosing position, keep certain level of stock as stop-loss.




  • As role Long term investor


  • Diverisify your portfolio





  • Use volatile market as oppertunity to diamonds at No cost.



  • Long term investor is player with very low risk if you choose any stock on fundamnetal basis of stock. Avoid stock where you not feel future, even though analyst say anything positive regarding this stock

    This little but very useful tips help you to survive and earn money in volatile market.

    You can ask queries regarding this.

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