- Stop Loss Strategy: Consider placing stop-loss orders for specific stocks. For example, if you buy shares of a company at ₹50 per share, you can set a stop-loss order at ₹48 per share. If the price falls to ₹48 , your shares will be automatically sold to prevent further losses. Trailing stop loss is another option, where the stop-loss level moves as the stock price goes up.
- Identify Entry and Exit Points:
- Entry Point: Confirm the trend before investing. Look for stable prices and avoid making hasty decisions based on breakouts. Study the trend carefully before entering a position.
- Exit Point: Plan exit points to minimize losses or achieve profit targets. You can use market orders or set stop-loss orders if the trend turns unfavorable.
- Watch for Sell Signals:
- Pay attention to signals indicating it’s time to sell. These signals are based on fundamental and technical analysis. Factors to consider include moving averages, relative strength index (RSI), candlestick patterns, and trend lines.
- Diversify Your Portfolio:
- Invest in various stocks across different industries and market capitalizations. Diversification helps mitigate losses because if one stock performs poorly, others in your portfolio may offset the decline.
- Set Realistic Expectations:
- Understand that investing involves risks. Avoid unrealistic expectations of high returns. Instead, focus on achieving steady growth aligned with your risk tolerance and financial goals.
Remember that patience, discipline, and continuous learning are essential for successful investing.
