investing in stocks

A detailed guide to stock market strategies

Following good stock market strategies is essential to earn attractive returns and protect your investment corpus from market volatility. An important aspect of your investment journey is strategising. While investing in stocks, you need to adopt certain strategies to stay in the market and earn profit. Decisions in stock markets cannot be made hastily but must be done with a sound and vigilant mind. At the end of the day, it is entirely up to you to decide which strategy suits you the best.

  1. 1. EOD strategy: The EOD strategy, also known as the end of the day strategy, as the name suggests, involves trading as the market is about to close for the day. This is the time when the traders become active as they usually know at what price the market is going to settle.
  2. 2. Following the trend strategy: As per this strategy, one is advised to purchase when the prices are at a boom and sell when the prices start showing a downward trend. This is one of the easiest stock investment strategies for those having a good understanding of business cycles of specific companies or industries.
  3. Gap strategy: If you go through a stock market graph, you will notice that many stocks have gaps. For such cases, the first trading hour is used to identify the trading range, and with that, it can help you as an investor to decide on whether to buy or sell.
  4. News strategy: This strategy involves trading that is entirely based on the current news and market expectations and speculations. In this strategy, you will have to assess and analyse the news immediately and make quick decisions based on your on-the-spot analysis.
  5. Quality investing strategy: This strategy is especially useful if you are a beginner. While investing for the first time, help in investing in stock market wisely. This is done by picking those stocks of companies that have a great hold in the market.
  6. Avoiding rumours strategy: One of the ways in which many investors approach stock market trading is by making investment decisions based on rumours fuelled by people who might not be market experts. Following such an approach could have an adverse impact on your investment. Be equipped with market knowledge, carrying factual data from reliable sources like NSE, BSE, and also the company you are investing in.

Following stock market strategies could help you to gain long-term success in reaching your financial goals. Explore your investment options by getting in touch with a financial advisor to get tailormade investment advice suitable for your financial goals and risk appetite.