What are defensive stocks?

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In plain words defensive stocks are said to be the stocks that are not affected by the adversities of the ebb and flow of the business cycle. In other words the defensive stocks refer to those stocks which remain stable during all the stages of business cycles. The business cycles are the situations of the ups and downs in the economy. The economy is never static and it keeps fluctuating and as such there arises different stages in the economy. These stages are the periods of boom and depression. The economy can be very suitably compared to a wave. Just like a wave, always rises up and then descends down at regular intervals, the economy too rises (that is the period of boom) and then descends down (that is the period of depression) at regular intervals. In other words neither the period of boom nor the period of depression lasts forever. Generally the period of depression brings in losses and the period of boom brings in profit. So get some knowledge on what are defensive stocks.

Understanding defensive stocks
In order to understand the defensive stocks further, we have to at first understand what a stock means in general. It is already known to all that defensive stock is a type of stock. But do you know what exactly a stock is. Everyone of us are aware of and are also very familiar with the terms like stocks, shares, stock market, share markets, etc. as these words have become the most frequently used words in today’s world. Especially after the advent of liberalization these words have become an integral part of our day to day life. It is so because liberalization has made all the stringent economic policies flexible as a result of which the concept of stocks and shares are gaining ground.

Adapting yourself to changes
As such I believe that we, the people too should go with the flow because it is always advisable that you adapt yourself to the changes around you if you really want to succeed in life. That is in other words I believe that we too should start educating ourselves about the stocks and shares now because the present scenario is such that it has created situations which demands for such knowledge. Also the concept of investing or investment is very profitable for our economy and also for the world economy as a whole. But educating ourselves does not mean to gather the knowledge in bits and pieces. It is always to be kept in mind that a little knowledge is a dangerous thing. If you acquire knowledge about anything always acquire it fully. Partial knowledge is of no use. It does not serve your purpose in any way but instead becomes just like the beautiful poem which is only half written or like the thriller with no proper ending.

Getting the best knowledge
I am aware of the fact that most of the people today invest in the stocks and share without even knowing the A B Cs of the stock market only for the reason that they too want to earn profit like their friends or acquaintances. Many see stock market as machines that can double your money in a few years time and many others see it as an opportunity to make their black money disappear. It is because of all such misconceptions that people are losing huge amount of money. You should know about online stock trading. After losing everything it is of no use blaming others. Blame yourself because it is you who are responsible for bringing about your own downfall. This is the fate that every investor meets who emphasize more on returns and less in analyzing the pros and cons of the market. And to some extent I believe they rightly deserve so. So you have come to understand what are defensive stocks.