Skip to content
digitalgpoint
Menu
  • Home
  • Business
  • Blogging
  • Technology
  • Marketing
  • Application
  • Finance
  • Education
  • Contact Us
Menu
Stock Market

What is the Perfect Way of Investing in Stock Market?

Posted on December 18, 2020

Stock market trading strategies have evolved over the past few decades. From value investing to technical analysis, you can follow many philosophies and methodologies. But, in order to maximize returns and minimize losses from the stock market, you need to follow some basics. This article will brief you on some best practices to maximize your returns from stock market investments.

Stock markets offer high liquidity, higher returns within a short span of time, intra-day trading, and many other benefits. However, stock market investments entail some risks in the form of market risks, business risks, liquidity risks, interest-rate risks, inflation risks, etc. So you need to know some investment basics to minimize your losses.

You May Like : Best SMSF investment strategy for income and capital growth

Ways to Invest in Stocks

There is no ‘perfect’ way to invest in stocks because no investment method is without drawbacks. Moreover, the expected returns and risk appetites differ from person to person. But, there are some general rules which will enable you to maximize returns and minimize losses irrespective of your risk appetite. Let us examine these tips below:-

  • First and foremost, you need to open a Demat account to trade in stock markets. There are many banks or financial institutions like which offer Demat services. If you do not know how to create a Demat account, use the internet search engines to access the websites that have explained the process in detail. Bajaj Financial Securities Limited (BFSL) Demat account is one of the best options available in the market as it charges a flat brokerage rate per trade, thereby helping you save big on brokerage costs.
  • It is better to go for options like the Bajaj Financial Securities Limited Demat account because they allow you to open a Demat account online at zero brokerage cost. In addition, the affordable subscription packs offered by BFSL save up to 99% of brokerage fees on delivery trades. Backed by the trust of Bajaj Finserv, opening a Demat account with BFSL lowers your business risk significantly.
  • Decide how you want to invest. In other words, assess if you are knowledgeable enough to do proper fundamental and technical analysis of a stock before investing in it. Otherwise, seek the help of a financial advisor.
  • Set aside a budget for stock investment. Most demat service providers would want you to maintain a minimum balance of INR 50,000 in your Demat account before you start investing in stocks. If you have a longer time horizon at your disposal, you can allocate a larger proportion of your investment portfolio to stocks. Keep lowering the proportion of stocks in your portfolio as you keep aging.
  • Remain invested for the longest possible time. The longer the investment period, the greater will be the returns from stocks.
  • When interest rates are low you must invest in equities and vice-versa.
  • If you are a beginner, start investing in ‘A’ grade or blue-chip stocks to minimize market risks. Low-cost mutual funds and Exchange-Traded Funds are also good options for amateurs. Specify stop-loss price.
  • Hedge your stock investment risks by investing in derivatives or bonds. The popular derivative instruments are futures and options. Futures are financial contracts that will enable you to buy or sell a security at a predetermined price on a predetermined date. Options allow you to buy or sell the underlying asset at a predetermined price on or before a certain date. If interest rates are not very volatile, bonds are a good alternative for stocks.
  • Factor in inflation component while calculating expected returns from stock investments. Value stocks perform well during inflationary phases as compared to growth stocks. Value stocks are stocks that trade at a discount or below their par value. Growth stocks are stocks that grow faster than the average stocks.

These are some basics to follow while investing in stocks.

digitalgpoint
DigitalGpoint (Author)

An author of DigitalGpoint, We have published more articles focused on blogging, business, lifestyle, digital marketing, social media, web design & development, e-commerce, finance, health, SEO, travel.

For any types of queries, contact us on digitalgpoint.webmail@gmail.com.

Related

Experience the power of our cutting-edge technology to remove background from video with precision and ease.

Explore Non Gamstop Casinos
https://gamblingpro.pro/400-bonus-at-non-gamstop-casinos/
Best Non Gamstop Casinos
  • Twitter
  • LinkedIn
  • Facebook
  • Instagram
  • Medium
  • Pinterest
digitalgpoint google news approved

CATEGORIES

AdvertisingApplicationAutomobileBackpacksBeauty TipsBiographyBloggingBusinessCareersDigital Marketing TipsEducationEntertainmentFashionFinanceFitnessFood TipsGadgets TipsGames TipsGifts TipsHair CareHealthHome ImprovementJavaLife StyleMarketingMiscellaneous BlogsProgrammingReact JSReal EstateSelenium Testing TipsSEO TipsSocial MediaSoftware TipsTechnologyTravelUncategorizedWeb Design & Development

Latest Posts

  • The Advantages of Free Ad-Supported Streaming TV
  • Introducing Your Ultimate Ticket to Global Company Formation
  • Unlocking the Power of Penetration Testing Services
  • Mastering the Theory Test: Your Comprehensive Guide to Acing It on the First Attempt
  • Exploring Examples of Enterprise Search and How It Benefits Businesses

Web Safety

BOSS

digitalgpoint.com

Free of toxic links

Approved by Sur.ly

2022

ABOUT DIGITALGPOINT

www.digitalgpoint.com founded in 2020, This is a web magazine that provides information around digital world, business, creativity, creation, creative people and creative world. It has focus on simplicity, beautification, practicing easy and straight-forward learning.

Company Information

  • About Us
  • Advertise With Us
  • Contact Us
  • Privacy Policy
  • Submit Your Guest Post
  • Terms & Conditions
  • Write For Us

Get in touch with us

Click Here: To Submit Your Guest Post

digitalgpoint.webmail@gmail.com

Copyright © 2020-2023 All Rights Reserved. DigitalGpoint