What we have to do when stock market is volatile?

Question

What we have to do when stock market is volatile?

Answer 1

You should hold on to your stocks and wait for a better time.

Answer 2

Invest amount in fundamentally valuable stocks

and keep quite for some days.

Answer for your query:::

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Answer 3

INVEST in Top 8 Scrips in 2008 when the Indian Stock Markets fall in July 2008 (BSE Sensex support will be 12,868.28 (+/- 0.1% variable) and NSE S&P CNX Nifty support will be 3,821.00 (+/- 0.1% variable)):

Reliance Industries (RELIANCE), Infosys Technologies (INFOSYSTCH), ICICI Bank (ICICIBANK), Larsen & Toubro (LT), Housing Development Finance Corporation (HDFC), Bharti Airtel (BHARTIARTL), Tata Steel (TATASTEEL) and Oil & Natural Gas Corporation (ONGC).

INVEST 16% in First Scrip, 15% in Second Scrip, 14% in Third Scrip and so on of your total fund or

INVEST 12% in each scrip of your total fund.

Please be in touch with me by email on [e-mail]

I am a Technical Analyst.

Answer 4

If you are investor then you have to sit back and watch until the volatility settles down.

If you are an active trader, then you can make use of the volatility in the stocks and make money out of it

Answer 5

Wait for some positive signals from global markets like 1) fall in crude oil prices,2) improvement in US economy etc., Till such time invest very little and hold your positions. You can consider other investments like Gold, Bank FD and PPF. You can refer, http://www.put-options.info for more ideas.

Answer 6

Volatility is an integral part of the stock market.  Whether you buy a stock or group of stocks today or tomorrow does not matter.  The moment you buy a stock its price is exposed to volatility.

This volatility occurs on a daily basis and maintains a band through the opening-high-low-closing prices.  Depending on news and other variables pertaining to systemic and unsystemic factors the volitility is high on some days and low on others.

Now getting to your question.  The decision to buy and sell stocks and your success in your transactions is not depended on the volitility of the market or stocks; but on the investment system you have in place with all its checks and balances.

So, in a volatile market if you find an opportunity to buy as a stock is below its intrinsic value then buy.  On other occasions when this volatiltiy causes your stock(s) to move up in price to levels where you have a reasonable profit; then you may consider selling the stock to book the profit.  And lastly, if you are holding a stock or group of stocks that have not been volatile then hold them till such time that they achieve price levels to result in a reasonable profit to you.

Happy investing,

Akash

http://www.narachinvestment.com

Answer 7

Friend,

A good investor need not panic because of the volatility. Volatility is the basic charactor of stock market and that only give an investor to put options to buy or sell stock. So that is a required one.

Invest with good companies, who doesn't have debt as well as increasing Net Profit, Sales and EPS in an year to year basis. Invest for long term and that will certainly give you good profit.

Does this make sense to you

Answer 8

I LOVE a volatile market. 200 up 400 down. love it. more please.  That is where pros and traders make their money.

"Buy the dips and sell the rips."

For most people, just dollar cost average over a 10-15 year horizon in the S&P 500 Index. If you are buying individual stocks long in this market, you're speculating.

Answer 9

Wait and watch.  Never take any position in volatile market.Neither buy nor sale panically !

Answer 10

wait and watch......

Answer 11

stay away from being buthered......volatility of mkt is a butcher with naked knife in his hand.......if u come under his hand, u r killed....