9 STRATEGIES FOR NAVRATRI TRADING

The onset of festivities might intrigue investors to explore the trading opportunities of the season. We present nine strategies to help you make better trading decisions and boost your profit score this Navratri!

1. Accept market ups and downs

Ups and downs are characteristics of the stock market. Investors must come to terms with the movements of the market as it helps in better understanding and anticipating market trends. By going long or short as per the requirement, use the ups and downs to your benefit.

2. Focus on research.

Trading and investing are incomplete without research. Traders who want to capitalise on short-term market movements should depend on technical research. If the goal is long-term investments, focus on fundamental analysis.

3. Decide your time horizon

Depending on the time horizon of the financial goals you want to achieve, decide if you are in the market for short-term or long-term gains.

4. Determine your risk appetite

Your trading strategy will depend on the level of risk you are willing to undertake. High risk involves higher but unsteady returns, whereas, with low-risk strategies, there is an improved chance of small but steady returns.

5. Get into the habit of following economic news

While you must read about the stocks you intend to trade or invest in, know that it will not be the ongoing trend. The market is influenced by important national and international events. Therefore, develop an active interest in economic news for a better understanding of the market.

6. Be prepared for bearish and bullish markets

If you’re experiencing a consistent good streak in the market, know that it is not going to be the ongoing trend. The market moves in cycles, and the bear market may be waiting for you at a distance. Always be ready to experience a downturn.

7. Assess and learn from your mistakes

It is common for traders to make mistakes, even if they are seasoned traders. If you commit a wrong trade, examine what went wrong and learn from the experience to avoid repeating it.

8. Become comfortable with ratios

To find good companies for investment, ratios are vital. Study the P/E ratio, debt-equity ratio, and other metrics before deciding on the stocks to hold.

9. Be patient and manage your expectations.

Trading does not let you earn rewards and become wealthy overnight. The journey is a gradual and ongoing one. Remember to adjust your expectations accordingly.

Final thoughts

The trading strategies mentioned above are beneficial for starting your trading journey. Try to hone your trading skills regularly to stay on top of your game.

Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Ms. Mamta Shetty, Contact number: 022-40701022, E-mail address: complianceofficer@icicisecurities.com. Investments in securities markets are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.