Secure Your Stock Market Investment @ < Rs.11/Day

HYDERABAD, India - March 6, 2014 - PRLog -- Summary

Simple statistics suggests Indian stock investors had more than 60% chance of making profit in the last five years. This was based on the assumption that they chose their stocks randomly. In a survey we found that more than 90% retail investors have lost their money during the same period.  Most of these investors had taken tips or professional help from one or multiple sources.

For investors with random pick strategy, the winning percentage was 60% while contrary to that 90% investors in sample group had made loss. Hence, we can conclude tips were working against the investors in disguise of favour.

More details please visit the following link

http://safetrade.in/ArticleReader.aspx?ArticleID=tipsy

Top observations in our study:

61% of investors have made profit even by investing for a short period of one year. A sample period of 5 years was taken for testing the concept.

As the number of years of investment increased, chances of profits have improved. More stability can be seen in the table (above).

Increasing number of stocks in your portfolio will decrease chances of overall loss exponentially.

Conclusion

Your chance to make profit in the stock market improves drastically if you just avoid tips from unaccountable sources.  Do not believe in insider tips stories. Do not trust analysis which has no statistical evidence to support their claim. Read our other article ‘The Mythical P/E Ratio’ (http://safetrade.in/ArticleReader.aspx?ArticleID=TheMythi...).

Average profit made by stocks is always higher than average loss made by them. Hence, dividing the money across multiple stocks will increase the chance of overall profit.

Restricting your investment within Top500 stocks improves chances of making profit as well as improving the rate of return. If you do not like to review your stocks periodically then it is better to restrict yourself to NIFTY50.

Net return improves significantly if we reduce the size of loss. Exit from the stocks which have confirmed downward trend (Read Rule-X (http://safetrade.in/ArticleReader.aspx?ArticleID=RuleX)).  Hence, periodic review of the stocks in one’s portfolio improves profits on most of the stocks.

A random year may give very bad return in the stock market. Always enter the market with a long term perspective. Do not expose your money which you may need in near future (say 3 years).

Active Portfolio Service (APS) and Tips(y)

APS (http://safetrade.in/) is the only known vaccine for Tips(y) virus. This service automatically takes care of most of the best practices concluded in this article. APS provides universe of Top500 stocks and suggests investing in at least 10 stocks (better to invest in 20). It has Portfolio Builder (http://safetrade.in/PortfolioBuilder.aspx) tool which helps in creating true diverse portfolio to minimize sector specific risk. It takes care of money management. Enforce equal distribution of money across stocks in the portfolio.  It does market watch and checks for change in trend (follows Rule-X (http://safetrade.in/ArticleReader.aspx?ArticleID=RuleX)). It alerts investors through SMS and e-mail. It has statistical evidence of giving 21% average across 5 years. 80% of investors make profit in the range of 15-26%. First timers can use this service to practice virtual trade (no risk on actual money). APS supports paper trade (http://safetrade.in/ArticleReader.aspx?ArticleID=PaperTrading).


Active Portfolio Service supports Paper Trade to boost the confidence of investors in our system. Our 30 Days Money Back Policy along with Paper Trade places users in Win-Win situation. Paper trade ensures they will not loose anything on the investment front and our Money Back Policy ensures they will get refund of money if they did not like the service. (visit http://www.SafeTrade.in for more details)