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Saturday, June 6, 2009

Steps To Avoid Risky Trading Strategy

By Greg Deffson

Share markets are the easiest and most risky way to make good profits. However, that said you can enter very easily into the stock market and that is why there are so many people entering into the share world on a daily basis. The gains made by these are definitely handsome than a lot of other avenues.

You start by selecting a full service broker or a discount broker or you can also start with the alternative method which is the mutual funds

Invest in the stock market for long term to avoid risk. If you are a risk taker then only invest in the stock market for short term.

Pick stocks from the defensive sectors as that will help you make good money without the attendant risks.

Instant gain can be there in some stocks but again these stocks can also give you losses so you better be careful.

If you have time to monitor the stocks only then invest in short term stocks else go for the long term stocks.

Have a cushion for losses otherwise you can be caught off guard and there will be no money left for you to cherry pick stocks. Buy when everyone is selling and sell when everyone is buying is the mantra that you should follow and that will help you make a lot of money.

Before entering the market make sure that you know what is your risk taking ability and this risk profile will stand you good while taking any risk in stock market. - 23221

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