Seven ways of managing money in securities trading
Traders cannot control market instability; however, they can unquestionably deal with their cash by embracing successful money management techniques without which there is a probability of losing part or entire investment.
Mar 17, 2018 04:03 IST India Infoline News Service

- Approximately 60% of individual stock price movement is credited to market sentiment. Share prices rise and fall with the market. Subsequently, being on the right side of the pattern is very much required.
- Owning stocks of individual companies can offer better returns at a time. It, likewise, exposes one to a higher risk that can influence the business. Consequently, dividing monetary resources across the industry or different resource classes is a good and time-tested approach to minimize risk.
- Disciplined trading not only helps you manage money but also guarantees fair profits. Enjoying overtrading may lead to losing profit along as well as the initial capital.
- One should preferably invest surplus money which he/she might not require until the distant future; this surplus can help in case there is an emergency or a financial crisis.
- Always trade with various strategies. It is important to have an understanding of the market's basic and technical realities. It is also useful to take expert advice and evaluate tips.
- The market can turn out to be highly volatile at times, which tends to shake investor confidence. Therefore, stick to basic-level, active stocks and stay invested for a longer period to claim higher returns on the invested cash.
- If you own stocks that have expanded significantly in value, selling some of them is a decent approach to safeguard partial profits. You will still have the potential for further upside on the remaining stock. During times of higher-than-normal instability, take a portion of profits from a better positioning and leave those returns in cash. This way, you can help secure those profits and lower your overall risk.
