How to be still successful and make money  in  Volatile Markets like now?

How to be still successful and make money  in  Volatile Markets like now?

Thanks to globalization, the world has reduced to a single village in terms of transactions, investments, information dissemination  and  as a result what happens in one part of this world does impact others as well. The Stock markets have always reflecting  this impact in tandem with the good and bad trends. Investors who are conservatives and sometimes wary  of stock market risks have been attributing this trend for their non-entry into this market. A tightly interconnected world  witnesses numerous developments good and bad on a daily basis and they do influence the sensitive markets. Market volatility is inevitable  and one has to still  swim even when the waves are violent.

The current Indo-Pak tensions, the on- going US-China tussles, the Brexit conundrum –all have their impact on our markets. The impending elections for choosing the lawmakers is another having impact  weighing the movement of our stocks and other commodities. Rupee Vs US Dollar is one another financial  horizon which will be impacted particularly when the war cloud sets in.

But the investment market in Stocks has always been fascinating  and people with the right frame of mind, knowledge and strategy always make money in any market- whether it is  bull or bear! The following tips might help you to become one such.

  1. Markets are volatile. That is the reality. This shows that the prices may go up or down. It is necessary to follow a few scrips =-say 5 or 10- closely over a period. Understand the trend, pattern and range and note down. Find out the average of lows and the highs for period say a month. Then decide to wait and buy at the lowest of the average and take advantage if it goes up with a return of 15 % ROI. Let us not be greedy and expect more than this.
  2. Let us not be a prey to rumors and become panic when the price comes down. It will rebound as the scrips you have chosen are fundamentally strong although there would be some aberrations. So getting panic would lead us to take some irrational and impulsive decisions.
  3. External factors cannot be controlled by you and me. But a logical and objective analysis of the impact could be recognized by us and a decision be taken accordingly.
  4. If we have no time to study the news and market movements, it is better to rely on dedicated professionals whose job is this everyday- so entrust this job to them by investing under SIP scheme.
  5. Based on our financial goals let us diversify the investments under different class of assets to offset the combined risk. So on an average the investment is safe.
  6. Investments in equity and debts will help balancing our portfolio and the resultant return and risk. Let us be aware of the risk- return pattern and be equipped with knowledge and information to handle this.
  7. Young investors should have patience to wait and harvest  better returns in long term than being in a hurry and  the bourses have never belied their expectations if the past track records are any indication.

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