There is always some risk associated with every business but in case of stockmarket investments the risk factor is high as compared to other business.
Everyone knows that they should buy when the markets has reached its lowest and sell the shares when the market peaks. But the fact remains, no one can estimate the markets.
It is impossible to an individual to estimate the lower or peak price of a share, If you invest the whole amount at once you may face the severe losses when the market dips suddenly, to avoid such type of losses It is better a investor should buy shares over a period of time.
When the market dips, go ahead and buy some stocks. But do not invest huge amounts. Pick up the shares in stages. Buy only a few stocks and invest in them gradually. When the market dips buy them. When the market dips again, you can pick up some more. Keep buying the shares periodically so that you can average the price of the share and come out of it with a good profit.
The important point to gain from volatile market is to act like a watchdog and start buying on dips and selling on highs. Analyse few important figures like support and resistance levels, 52-week highs and lows to estimate the extreme price a stocks can touch.
RISK WITH HUGE INVETMENTS
