March 8, 2011 by akhilendra
How to tackle this market?
Markets ended on a high note today with Sensex ended at 18441.11 up 218.44 points or 1.20 per cent and National Stock Exchange s Nifty closed at 5521.90, up 58.75 points or 1.08 per cent. Markets were upbeat after the crude dropped by $2/barrel and news that OPEC is taking steps to boost production. Markets so far in this year have been trading in this fashion. They will fall sharply on some negative news and then they will recover from there to hit the resistance. After hitting resistance, they will fall again.
Investors have lot of money in guess work. Traders believed that they can trade it in both directions but as stock markets are behaving in a very unpredictable manner. Even for traders things are getting murkier. When you choose to buy call option, market goes down and when you buy put option, they go up. This market is not for average investors who are often faked by brokers who tell them that their money will double in one month.
This market is excellent for those who have got a time frame of six months to two years or more. In market, capital protection is one of the most important aspects. If in a falling market, one can protect capital, it is also a kind of gain for self. So don’t lose your precious money in speculation. Invest it intelligently. Equity class is the most rewarding but it also requires a thorough investigation of the facts and current geo political scenario.
It is the ideal time for an investor to relook at the investing strategy which a general investor follows. They either don’t invest or invest everything. Learning is the best practice. Invest in yourself and then invest elsewhere. This is the time when one should look for the medium to invest in equity market and its alternatives.
For selecting medium to enter in stock market, one can go for blue chip mutual funds and Exchange traded funds. For alternatives, Gold and Silver are very good option. But always remember, before you invest in anything, invest in yourself. Learn the art of investing.
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