How to Invest in stock market: 5 key points for Trading Smartly. Get higher returns in investment

Points for a Smart Investor before they Start Trading in Stocks

Benjamin Graham the father of value investing. Once describe how an ‘Intelligent Investor should invest in the share market. ‘a great deal of brain power goes into this world but undoubtedly some people can make money by being good stock market analyst. but it is absurd to think that the general public can never make money but of market forecast”, Graham said.

In a market that is constantly changing at a rapid pace, what you will carry is not just intelligence was also smartness, pragmatism, hand flat footedness. Stock market investing is not just stock tips and market tips. True investors focus on how to invest in the share market with smart strategy.

1. Don’t try to experience everything; rather learn from experience of others

there is much wisdom in market but if you plan to experience all of it by yourself, it will take you long time. A smart investor should ideally learn from the mistakes and experience of others. When NBFCs crashed, the learning was not to bet on companies with liquidity. Similarly, there was a stork’s like Manpasand beverages that God belton due to corporate governance issues. You must immediately draw your lesson from such situations.

2. Keep an eye on grapevine, but trade with your own conviction

On any given trading day, the markets are deluged with information,making it very difficult to differentiate between information, Insight, and noise. Rule number 1 is never to ignore any news on information unless you are convinced it is just a rumour or hearsay. most famous Sahib based on some truth and could possibly give you clues about your future Trade. For example, the WhatsApp flows on Dewan Housing finance (DHFL) and Infibeam where are doing the rounds even before the stocks corrected,giving Google good opportunity to cross check the data and take action. so keep and here to the ground what was your decision on your conviction.

3. Spread your risk but be smart about it

In the stock market, the best way to enhance returns is to reduce risk. That is managed by spreading risk . You can call it diversification are you can call it tweaking your portfolio the head of key events. The bottom line is that you are trying to reduce your breast to the extent possible. There are two aspects to spreading risk, when you spread risk, there is a cost in terms of forsaken returns ; you need to be prepared for that. Secondly trading risk beyond a point is meaningless as it relates to risk substitution rather than risk mitigation.

4. Ask yourself: is the complaint doing something different or something differently?

Some call it and entry barrier, some call it innovation, and others call it moat. what is smart investor need to constantly ask them self is whether a company is bringing something new to the market on innovating any of its existence products. Hero Moto took a different approach to transport business just as HDFC and ICICI Bank started of with technology driving banking. Similarly, you need to identify a new niche and cater to it. unless the company is able to do that is likely to lose value in the future in fact Geo shows the ability of Reliance to create and innovative delivery even with such stiff competition in the sector.focus on strokes that’s really have niche and you will be well off for most parts.

5. Time and tide wait for none so make the best of  Now,

In the stock market, one cannot wait forever just to be fully sure about something. The stock markets are volatile and uncertain. Logic and analysis will only take you so far but beyond, you must take a Leap of Faith and leave today risk management framework to take care of the rest.
If you are looking at a phased approach to investing, Dena Ho Gaya price points don’t make a big difference. The Sona you start the investment process the better it is. You can only wait upto a point . Also don’t consult too many sources. Your conviction works best as you have no one to blame if your trade goes sour, and only yourself to face when it goes well.if you have done your homework and think you can go ahead with red then believe in yourself and take a plunge.

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