How to minimize Stock Market Risk

If you invest in stock market then “Risk” might not sound a weird word to you. As soon as you mention the word stocks in any conversation you will get to hear the same old statement “OH ITS RISKY”. Most of the people know it’s risky, but still like to play with it. What’s exactly wrong with them?Let me tell you there is nothing wrong with them. They take this risk because they know how to convert this risk to reward. So for informed investors risk becomes calculated risk and what you can calculate you can mitigate too.

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How to select good stocks

The simplest route which retail investors follow while choosing stocks is to select it based on recommendation of some analyst on TV or picking it from the stock advisory section of a news paper. This at times sounds bit logical with respect to investors who do not have enough knowledge of stock analysis but what about the investors who react based on tips about some ABC company. They simply don’t know what the company does and what is the credibility of the source of the tip?

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How to Start Investing in Stock Market

This article aims to help new investors who are planning to enter stock market. I will be discussing stock investment process in Indian market together with a brief idea about stocks. This article will be followed with a lot of other articles aimed at equipping new investors with tools needed to be a professional investor. So let’s start with the first step.

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Important Tools for New Equity Investors

So you have bought your first stock (If not then read the article “Buying the first Stock”). It was fun and now you want to build a portfolio. Mind you “the fun ends here”. Buying the first stock was relatively easy but building on a portfolio of stocks which generates consistent return is a different ball game all together. I am saying this because when you bought the first stock the capital invested was not much (10000 now a day is not muchL) and you bought the stock from the most familiar sector. Both these factors contribute towards reduction of risk.

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Tax Saving Infrastructure Bonds

Feb to March is the most active period with respect to tax planning. Most of the earning community is busy with exploring different type of tax saving options. Tax is such a dreaded word that it makes both rich and poor dance to its tunes. Irony is Income Tax daemon is harsher towards rich people who otherwise have all the powers. The more you earn the more you are liable to pay as taxes. There is no way out of this trap but surely there are some consolation prizes for the investor community.

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