5 Tips to make money in volatile stock market

1. Volatility in stock market is the order of the day due to integration of Indian stock markets with global markets, subprime crisis fallout, soaring inflation, rising trade deficit and a moderated industrial growth. However nothing to get despaired as at least a few ways exist by virtue of which one can navigate through the volatile market and same are listed below:
(a) One should during such turbulent times invest only in quality stocks and avoid penny stocks.
(b) One must undertake adequate research before testing the waters of the stock market.
(c) Avoid investing based on rumours and tips being provided by brokers as they are more interested in their commission being generated. However; a broker must remember that a happy and wealthy trader can bring him more commission and thus I take the opportunity to call on this community to advise the clients post due deliberation.
(d) Do remember to use the stop loss and trailing loss strategy as a guru mantra as stop loss helps avoiding large losses and trailing stops avoid seeing the profits turning into losses.
(e) One can enter as a long term investor as a this category of investment always pay dividend irrespective of the state of the market.

2. It is good to read these tips but it makes sense if one can implement the same in the trading lifestyle and can thus sail through the turbulent markets with a sense of pride and making profits when whole world is bearing the pain of losses caused due to global meltdown.

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