Investment Strategy In this Volatile Market
Markets are going up and down.People are facing the problem as to what to buy when to sell should they buy more of same stock or should they just get out of it.Well we would say that currently market is very volatile and you need to judge your portfolio stocks very carefully.The uncertainty over oil price hike resulted in volatility at the counters of Oil Marketing Companies,Fresh concerns over increasing sovereign debt problems in Europe spooked global markets.Again some investors are more concerned about the chinese bubble thing.This is all making things on the worst side.
Investors have to diversify their investments maintain the liquidity and also use the stoploss each time they trade.Govt’s are trying their hard to keep things rolling but there are more than enough problems on it.Then budgets and taxes are also coming which will surely effect the market a lot.Look for fundamentals as well as technicals before investing. If a company looks good and is trading well below its value then it is a signal to buy it.Better keep an eye on market and your investments and look to get rid off overvalued stocks on rally.
There will be less liquidity in market due to govt policies to suck up the liquidity from the market and also FIIs have been on a selling spree.