9 Strategies for Navratri Trading
The onset of festivities might intrigue investors to explore the trading opportunities of the season. We present nine strategies to help you make better trading decisions and boost your profit score this Navratri!
1. Accept market ups and downs
Ups and downs are characteristics of the stock market. Investors must come to terms with the movements of the market as it helps in better understanding and anticipating market trends. By going long or short as per the requirement, use the ups and downs to your benefit.
2. Focus on research.
Trading and investing are incomplete without research. Traders who want to capitalise on short-term market movements should depend on technical research. If the goal is long-term investments, focus on fundamental analysis.
3. Decide your time horizon
Depending on the time horizon of the financial goals you want to achieve, decide if you are in the market for short-term or long-term gains.
4. Determine your risk appetite
Your trading strategy will depend on the level of risk you are willing to undertake. High risk involves higher but unsteady returns, whereas, with low-risk strategies, there is an improved chance of small but steady returns.
5. Get into the habit of following economic news
While you must read about the stocks you intend to trade or invest in, know that it will not be the ongoing trend. The market is influenced by important national and international events. Therefore, develop an active interest in economic news for a better understanding of the market.
6. Be prepared for bearish and bullish markets
If you’re experiencing a consistent good streak in the market, know that it is not going to be the ongoing trend. The market moves in cycles, and the bear market may be waiting for you at a distance. Always be ready to experience a downturn.
7. Assess and learn from your mistakes
It is common for traders to make mistakes, even if they are seasoned traders. If you commit a wrong trade, examine what went wrong and learn from the experience to avoid repeating it.
8. Become comfortable with ratios
To find good companies for investment, ratios are vital. Study the P/E ratio, debt-equity ratio, and other metrics before deciding on the stocks to hold.
9. Be patient and manage your expectations.
Trading does not let you earn rewards and become wealthy overnight. The journey is a gradual and ongoing one. Remember to adjust your expectations accordingly.
The trading strategies mentioned above are beneficial for starting your trading journey. Try to hone your trading skills regularly to stay on top of your game.
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