The publicly traded companies in India are governed by SEBI (Securities & Exchange Board of India) to disclose how their productivity and results may be linked to the performance of the financial markets. This requirement is meant to detail a company’s exposure to financial risks. A company making derivative investments or trading foreign exchange futures is exposed to more financial risk than companies that does not do these types of investments or trading. This information helps investors and traders make decisions based on their own risk management rules.
The word Stock itself is made out of 5 alphabets and each represents a risk factor or actions which are required from our end.
S – Security
Everyone invests in Stocks for creating a financial security for the future. However, the performance of
the stocks depends on the performance of the company and the condition of the stock market in general. To ensure security you must
• Create a mix of Investment Portfolio of Stocks from different sectors, Corporate Bonds, Exchange Traded Funds, Commodities, Forex, etc
This will ensure that if any one investment does not perform as per your expectation at least the other investments continue to keep you and your money growing and secure.
T – Timing
Timing is one of the crucial decision and key to wealth creation while investing in stocks. When to buy and when to sell decides the profit or loss that you make in the stock market. To ensure your timing is right you should
• Keep a tab on the performance of the company and the stock market on a regular basis to
make timely decision about your investments.
O – Opportunities
Opportunities knock at your door all the time whether in life or in the stock market. You keep getting
all the details about the various stocks and their performance from time to time. You also get
knowledge about the risk factor involved from the market analysis. A person who is serious about investing and creating wealth will always
• Keep monitoring and reworking (if required) on his Financial Portfolio from time to time to get the best out of his investments. You can learn or seek help from a good financial advisor or guide in this regards.
C – Consideration
Making consideration is sometimes the right way to survive in the Stock Market. Making considerations
about changing your investment patterns according to your wealth is important. In case you are facing
losses in the Stock Market then it’s a wise decision to step back, relearn and relook at your investment pattern to ensure the growth.
A considerate investor will always
• Ensure that his wealth is not lost due to ignorance and bad decisions when he is making losses
K – Killing the Greed
Greed in the Stock Market can ruin your confidence and growth of your money. Creating wealth is a good objective for you and your family. Taking impulsive decisions and continuing to invest in high risk stocks may give you quick profits, but can also lead you to heavy losses and dent in your confidence. To avoid greed go slow and be diligent while investing and tracking the performance of the stocks.
The counseling of an expert or a mentor, in each aspect as mentioned above, can be of great help and save you from loss of money, energy and anxiety levels.
At Praj Academy of Capital Market, we provide you all the support you need to understand stocks or other asset classes for investments. To learn and know more you can visit or contact us on www.prajinvestments.com or prajacademy.com
You can also contact us for more information by asking your questions about stock market in
our website www.prajinvestments.com or
on Twitter : https://twitter.com/TraininginStock or
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