Fluctuating market and investor,trader
Relation between Investor and trader
Stock markets are always fluctuating always with many high and lows.At the very fluctuating time many trader made loss many investor left market due to big loss factor.The investor and trader should know about these possibilities and should be prepared for them both financially and psychologically.The price change in common stock with 20-30% range is normal.in this condition many investor and trader who have holding in share become panic and start doing wrong, they sold there position and holding in stock or making new foolish positions in stocks and at last they made lose.
Fluctuations is guide in making good investment
Normal stocks and shares are related to current and big up and down moves in their rates, a wise investor should be interested in possibilities of profiting form this clock wise movement. There are two ways to do this: timing way and pricing way. In timing way buy or hold when the future course is deemed to be upward. BY pricing way buy stock when it was coming down due to fluctuating market below its fair market value and hold them to when it will be overvalue.Market up and down conditions make many new way to pick a great stock at great price,remember that when do you buy you do not pay too much more for your stocks.
Do not become a speculator in market fluctuating time.It is always made loss because you do not know way of market and trend(up or down).Both investors trader and speculator in normal stock should devote careful attention to market forecasts.The investor can scarcely take seriously the innumerable predictions which appear almost daily and are his for the asking.In every dip of very good stock who have a long success story, make buy position . In India we have two sector famous for this type pattern first is Fmcg and second is Pharmacy sector. They are making always long bottem to top pattern.In very fluctuating time you can shift in defensive sector Fmcg and second Pharmacy sector.So be safe in investing.
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