SHARETIPSINFO >> Articles Directory >>Trading Strategies for an Uncertain Market

 

Stock market goes through different phases at different times. Depending on various aspects the stock market goes through bull phase, bear phase and the correction phase. During the bull phase the stock prices of most of the shares go up and there is a general feeling of optimism among the investors. Most of the people invest in the market during this time and because of the high demand of the stocks the price of the stock go further up. While investing in the bull market investors need not think beyond a limit. But it is the bearish or down trend of the market when the market remains volatile or uncertain most of the time, it becomes tough for the investors to take any decisions for investing in the market.

But technically speaking you can make good profit by even investing in the volatile market. All you need to do is find the stocks that are worth investing and most importantly find the level at which you should buy the stock. The key for making profit at the volatile or uncertain market is detailed research and analysis of the stock and the overall market. Here we are providing some practical tips on investing in the volatile market.

Find out the right stocks – While investing in the uncertain market you have to find the stocks that are evenly priced. That means you have to find out stocks that are not overpriced in the present market as the overpriced stocks generally see corrections and the price of these stocks go down very rapidly in the volatile market. So carry out a detailed study of the stock and the PE ratio to find out if the stock is exactly priced before investing in that particular market.

Technical Analysis – Once you have selected the stocks in which you want to invest, you need to do the technical analysis of the stock and study the pattern of the price movement of that particular stock. It will give you a clear idea of what is the perfect price level at which you should invest at the stock. If you find out that the stock has well passed the optimum level for buying the stock and it will hardly make any progress in the near future you should not even bother to invest in that stock.

It is always wise to invest in the blue chip stocks in the volatile or uncertain market as the price of these stocks are always certain to appreciate when the market becomes steady and moves upward.

 

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