{"id":2915,"date":"2018-10-08T09:00:17","date_gmt":"2018-10-08T03:30:17","guid":{"rendered":"http:\/\/capitalante.com\/?p=2915"},"modified":"2020-05-19T10:58:52","modified_gmt":"2020-05-19T05:28:52","slug":"4-steps-to-avoid-loss-in-stock-market","status":"publish","type":"post","link":"https:\/\/capitalante.com\/4-steps-to-avoid-loss-in-stock-market\/","title":{"rendered":"4 Steps To Avoid Loss In Stock Market"},"content":{"rendered":"

Stock<\/g> market is the world of possibilities. So, many people here want to make their fortune. There is a trending occupation in vogue. It is to provide multibagger<\/g> stock tips. Some over<\/g> smart individuals become or pretend to be expert themselves. They show their knowledge about stock<\/g> market. These so called<\/g> experts claim to suggest tips about good or profitable stocks according to their knowledge. They claim that on the basis of these tips any investor can earn a multibagger<\/g> return of 400% to 1000% within a span of 3 years. Generally, they claim to suggest such stocks which have delivered a return of at least 100% within one year. By follow<\/g> this tips<\/g> retail investors invest their hard earned money and finally suffer a loss. In this column<\/g> we will discuss about<\/g> the 4 Steps To Avoid Loss In Stock Market.<\/span><\/p>\n

4 Steps To Avoid Loss In Stock Market<\/span><\/strong><\/span><\/h6>\n

There is a common proverb quoted about stock market \u201cThe easiest way to lose money is to invest in stock<\/g> market\u201d. <\/strong>There are many instances where retail investors have lost millions of rupees after investing on the basis of these suggestions delivered by those so called<\/g> experts. Most of the people do not have even a little bit of knowledge about the earnings, fundamental aspects, technical analysis etc. of a stock in which they invest their hard earned money. They just blindly follow the tips offered by some experts or that kind of agencies.<\/g><\/span><\/p>\n

<\/g>I have seen many investors lost a huge amount of money after investing in Meenakshi Enterprise, Vakrangee, Shilpi Cable, Bombay Rayon, Artech Power etc. on being guided by several experts. Then, obviously<\/g> these investors have suffered a loss. So, instead of depending on these experts or agencies you should follow 4 steps to avoid loss in stock<\/g> market and take decisions by yourself.<\/span><\/p>\n

Robust Earnings Growth & Falling Stock Price<\/strong><\/span><\/h6>\n

When a company increases its sales and decreases input cost, naturally its profit margin grows leading to an increase in Earnings Per share and good dividend yield. But there are several stocks which have delivered weak earning at the time when bear<\/g> took control in the market.At that situation<\/g> these stocks correct themselves up to 100-120% from their peak price. On the other hand, the stocks with better financial results correct only 20-30% from their 52-week high in the bear market. In the bear market, after making proper<\/g> analysis, you can accumulate as many stocks as you wish via equity SIP at an attractive valuation. Then, when the bull takes control of the market, your investment may go upwards.<\/span><\/p>\n