Following The Footsteps Of Successful Investors And Managing Risks

In the words of Warren Buffet, an American investor and the third wealthiest man in the world

, The basic ideas of investing are to look at stocks as business, use the market's fluctuations to your advantage, and seek a margin of safety. The statement holds true for investors not only in the share market of India but the world market. People in India and worldwide draw inspiration from this personalitys investment portfolio; he has been deemed one of the most successful investors in the world. It was at the age of 11, i.e. in 1941, he bought 3 shares of Cities Service Preferred for himself, and 3 for his sister. And his success story related to trading in share continued since then!

Thousands of investors follow the ideologies followed by Warren Buffet himself. Well, you can no doubt follow the examples set by successful investors and on similar steps create your own strategies synchronized to your trading goals and objectives. Trading in share involves a good amount of risk. If you do not manage your risks, gaining returns on your investment will seem a far-fetched affair.

How do you manage your risks in the share market of India? It does not matter whether you are trading in share listed in the NSE of India or BSE of India. Because shares traded through both these bourses are influenced by market fluctuations. The difference between these two bourses is while you will find the largest number of listed companies in the BSE of India, you can equally take pride in trading via the largest stock exchange in the country - the NSE of India. Managing of risks differs on the level of experience. One may be completely new in the NSE BSE market and is in a dilemma how to start. One may have several days or weeks or months of experience on investing while there will be many who are seasoned experts. For seasoned experts, the risk factor is well managed. Over time, they have learnt how to move forward, no matter whether the market is in the uptrend or downtrend. For new and those who have gained little expertise, managing risks may still be a difficult task.

One of the tricks associated with managing of risks in the NSE BSE market is spreading out of money. Do not invest in one particular share. Invest in several shares in small amounts and consider both short term and long term investments. For short term investments, you will have to be more careful as risks involved are more, compared to long term investments. Quick money can no doubt be made from investing in new companies for the short term listed in the NSE of India or BSE of India or both. But before you do so, consider NSE BSE market situations, sector, performance of the company over the past few days or weeks the shares of which you are going to invest, etc. Read market news regularly.

by: Nirmal Kumar

POST COMMENT

Tech Help for Averaging Quarterly Figures on Excel in an Ongoing Basis Steps to Managing Multiple Projects What HGH Can Do To Help With Aging? Skin Aging Questions & Answers Benefits Of Chemical Peel For Aging Skin Managing Your Time Starts with a Clean Desk Packaging Consultancy Managing Temporary Workers within the Construction Industry Cardboard Packaging The Importance Of Staging Why Use Document Imaging? Master The Aging Process And Live Like Your 20 Again Seven benefits of using protective packaging