Safeguard Your Stock Market Investment

Stock traders use their online demat account to trade short and long term investments in order to gain from the buy and hold strategy.

Traders in stock always tries to make profit from the acquisition and selling of securities like stock shares. That is why it becomes important to protect stock investments wisely.

ROI

It’s critical that you comprehend the financial consequences of a bear market. Your investment capital does not have an equal give and take. What rate of return would you need to earn back your original investment of ₹10,000 if you put ₹10,000 into an investment that dropped 50% to₹5,000?

Once you’ve lost money, you’ll need a substantially higher return on your remaining cash to recoup your initial investment. In this situation, a 100 percent gain on the remaining would be required. ₹5,000 in order to recoup your initial ₹10,000 investment.

Slow Growth

We may extrapolate from prior bear markets in India that recovering from a bear market might take anything from six months to fifteen years! Covid 19 did cause portfolio value drops ranging from 20% to 40%! This is not a positive picture for long-term investors. This is why you’d be better off financially if you never lost money in a single year and only got half of the market’s gains in the years when the market was up.

The key benefit of buying and holding stocks in your best trading account over a long period of time is that you will not only protect your investment but also build a healthy portfolio. When investors attempt to timing their investments, long-term investments almost always outperform the market. Slow growth is better than losing money.

Low Value

The simple strategy here is that if you safeguard your capital in down market years, you don’t need to match or surpass the market in up market years. Protecting your capital during low market years has a compounding effect on your long-term capital growth.

Explore more on : How to Make Money from the Stock Market

Timing 

Any stock market timing strategy should aim to minimize risk while maximizing rewards, with risk management being the most critical component. If all other factors are equal, you should invest in the least volatile, highest-rewarding, and lowest-risk strategy.

Tweak

You may be reading this in the midst of a global epidemic because you’re tired of losing all of your assets, or those of your clients, to a bear market. You may even find yourself in a situation where your retirement savings have been reduced to the point where you must modify your retirement plans.

Regardless of the cause, the buy-and-hold strategy is still one of the most effective ways to increase and safeguard your assets and investments.

To learn more about the current stock trading strategies, read finance blogs and publications. Traders in the stock market keep themselves up to date.

If you’re still considering taking the plunge into investing, get things rolling by opening a Demat account with Nuuu