By: ABP News Bureau | Updated at : 30 Apr 2024 02:37 PM (IST)
Tactical investing focus on short-term investment decisions to capitalise on anticipated near-term price movements in a security or market sector. ( Image Source : Getty )
By Priti Goel
Strategy is a general plan to achieve long-term goal under conditions of uncertainty (i.e. situations involving imperfect or unknown information). Strategy is important because the resources available to achieve goals are usually limited. If you are getting started to invest in the stock market for the first time, key elements would be to plan how much and how regularly, you want to invest. Keep in mind that once your money is in the stock market, it's not easy to cash out compared with a bank account.
There's potential for loss, so it's a thumb rule to only invest money you won’t need right away. The longer your money remain invested, more time it has to weather market fluctuations and potentially grow. You should also define your investment goals (saving for retirement, child education, etc) and risk tolerance.
While above strategies are broad and proactive framework for investing, continuous learning is essential for anyone interested in the stock market. Choosing the right strategy will remain dependent your investment goal and your risk tolerance.
Avoid emotional decisions when markets/stocks are fluctuating. Thorough research, careful analysis and patience are crucial before making any investment decision.
Some of the other tips are pick a strategy and stick with it, avoid chasing a hot-tip, focus on future and keep a long term perspective and be aware of taxes.
"The individual investor should act consistently as an investor and not as a speculator." — Ben Graham
The author is the founder and CEO of Prisha Wealth Management Private Limited and a certified investment advisor.
[Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP News Network Pvt Ltd.]
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