Sunday, March 30, 2014

Nifty is at all time high. What should investor do?

Nifty is at all time high. What should investor do?

Nifty has reached to all time high which means India's top 50 companies according to the market cap has gone up to their highest levels. Most of these companies are at all time high. Some have even doubled in last 1 year. The real question what should investor do now. Should I book profit or should i go ahead or should I enter the market.

Trailing stop loss
Those investor who have already invested since last 1 year and have had enough profit can use trailing stop loss. Trailing stop loss increase the normal stop loss if the price of a particular share has gone up. Lets say you can bear a loss of 5% on current status than you can fix trailing stop loss to 5%. its win win situation for you. its not use we earn profit on paper and lose money in real because we don't keep stop loss.


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