Tips to avoid loss in stock market

Everyone wants to invest in the stock market and make a profit, but due to lack of proper knowledge about the rules and precautions to invest in it, most either do not invest or invest for a short period of time. The stock market is a very good place for investors to make a profit, but if some precautions are taken while investing, it can be very beneficial while keeping the risk of loss. Some beneficial tips for small investors to invest in shares are:

Investing in the long term is more beneficial

Many small investors get very nervous when investing in the stock market. They risk drowning in market volatility. In such a situation, they often spend money for a very short period of time. Many small investors invest money in the morning and sell in the evening. this is wrong. This is the biggest obstacle for you to earn big profits. Most small investors buy shares in the morning and sell it by taking advantage of its increased price by evening. In this way you can definitely make a small profit on your investment, but for a big profit you will have to prolong the duration of the investment.

Mr. Gupta bought 10,000 shares of Infosys and Wipro on Monday morning. By evening, the stock was sold with a profit of 4 thousand, priced at close to 14 thousand. On the second day, he bought the shares of that 14 thousand and sold it in the evening for 20 thousand. Similarly, Mr. Gupta was happy with his share gains. They were making even more profit by applying the gains received in the stock. Similarly, in 7 days, he made a sum of 10 thousand to one lakh, which was put back into stock for more profit. Suddenly on Saturday evening, he was shocked, his capital sunk 1 lakh. Mr. Gupta used to buy shares worth less than his increased amount every morning and in the evening whatever profit he received, he could buy it as profit, then sell it and buy more shares of other lesser value. . . . . But on that day, his math turned upside down. In fact, Mr. Gupta should have held his stock for a longer period. If they had done so, their share price would have increased with the rising stock prices of the company. Even if the share price fell for some time in between, they would have risen after some time. In this way, by investing for a long time, they also avoid day-to-day mental exercise and do not get into this problem today.

Apply the same money for which you do not work long term

It is often seen that investors put the used amount into the stock for their necessary expenses. In such a situation, they can neither keep it for long, nor can they take damage in it. Investing in shares is a very dangerous deal for such investors. If there is a profit, it is okay, but the loss situation proves to be mental and financial turmoil for them. Therefore, investors should never invest the required amount. You can invest in the market without worrying about profit and loss. If you have any problem then you can contact Our Stock Market Expert (Mr. Lakshay Arora).

Don't worry, business is not a gamble

Many small investors consider the stock to be a game of turmoil, while the stock calls for the exact opposite strategy. An investor should know what the position of the company you are buying is in the stock market, for some time, what is the situation in the stock market. Seeing low prices such as buying a gambling game and expecting profit from it can give you some benefit for a while. But due to market ignorance and lack of information, it may not succeed in the long run. This will result in loss of share investment. Therefore, before ever buying shares, the company whose shares are going to buy should study the position of its current and previous shares in the market.