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How to Get Good Return from Stock Market

How to Get Good Return from Stock Market

Most of the people are market-averse when it comes to investing their hard-earned money in it. The primary and most significant reason for this is the fear of loss of money. Generally, we use to hear that 90% people lost their money in stock market.  But I think we must know the rule of P.O.K, here POK resembles(P) Patience (O) Own money (K) Knowledge Here are some of the things you can do to get rid of your fear of investing in stock markets:

Gain Knowledge of Stock Markets: After getting proper knowledge and paper work, investors can reduce their investing risk significantly. When you do that, you automatically become more sound and comfortable to make your decisions. You can use virtual trading platform as for better understanding of stock market.

Don’t Lose Hope: If you have invested in a good company and presently the share price is going down, don’t loss hope, just keep patience. It may fall for few days, but if the company is fundamentally and technically strong, share price will go up very soon.

Develop an Investment Strategy: Even if you have no prior experience in investing, it is still very imperative and helpful to have an investment strategy. When you have a well chalked out plan, it becomes easier to manage your investments. You can develop an investment strategy by reading about various trading strategies online and customizing one for yourself by applying your own skills.

Start with little Investments: We should start investing with small amount. At each dip we can add some shares. When you start with small amount of investment, you are not too worried about the risk of losing all your money. you can begin by purchasing a single stock of a company you are interested in and gradually increase it later on. Second thing you must invest in different shares rather investing in only one share.

Find Your Favourite Sector: There are so many sectors in stock market where you can invest in. you have to keep close watch upon the growth of these sectors. You should find your favourite sector you might want to specialize in. If you decide that rental properties excite you, then try to gain as much knowledge as you can about how the real estate companies fit into the stock market. If you think IT is giving attractive return, you can learn about some of the top companies of this sectors.

Stock Market Volatility: Stock market is highly volatile, news of national level as well as international level falls impact on it for few days, so we must keep eye on such news. Be calm and tune out the noise that might make you take drastic steps which prove harmful in the long run.

About the Author

Dr. Santosh Kumar
Associate Professor – Financial Management
Jaipuria School of Business, Indirapuram, Ghaziabad