How to avoid losses and earn consistently in the Stock Market?

how to avoid losses and earn consistently in stock market

Why To Read, “How to avoid losses and earn consistently in the stock Market”

First of all losses in the stock market is a common thing but it gets unbearable when it keeps increasing. Stock Market uncertainty and volatility has become very common these days that’s why you need some strong and working strategy to avoid making losses or turn your losses into profits.

Here we have collected four reasons to avoid stock market losses or it’s better to say if you follow these rules you will minimize the possibility to make a loss. Earning consistently and avoid making losses are two faces of the same coin.

This is the sure shot formula of your success in the market, if you follow these rules, you are more likely to diminish the loss and get a rise in profit earning.

How To Avoid Losses and earn consistently in Stock Market.?

So, basically, below are the four most important stock market rules/facts which you must follow in order to keep winning.

Do Not Buy On Tips

The first rule to keep in mind is to never accept any stock tips whether for long term or short term or Intraday valid until you have tested or researched that yourself. this is the biggest blunder people follow and make loss in the stock market. avoid the mistake and avoid losses.

Last Month we had written an article on ‘How TV business news channels are making Retail Investor fool’ Which went viral like a forest fire, Which was a sign that how easily we as retail investors are getting fooled by these business news channels, and these paid media campaigns. If you haven’t read that article go read that right now.

Don’t Invest on someone else’s tips. You can take that as a bit of advice but research on that stock too than if you like you can make investments. If you wanna earn consistently in the stock market at least take the responsibility to do required work.

For the starter, at least examine three basic things about the company:-

Balance sheet

Income statement

Cash flow movement

Pick stocks testing onfixed factors

When picking your desired stocks, testing that on some fixed factors is very important.

As they say, “don’t just buy any stock based on your guts but you must test that on few most important parameters to see if that’s going to fulfill your needs or not”.

The sector, pastperformance, Industry evaluation, market cap, PE Ratio are best for startingyour research.

Read Here:- How to Find a Multibagger stock.? Few most important tests to do.?

Wide Diversification is really important while choosing stock.

Don’t follow the crowd

Most of the retailInvestor tend to follow the business news or the forums where people keeptalking about some specific stock and you tend to follow that.

Just don’t buy on someone else’s speeches. If someone is saying they are making a good return with some stock from last one year that doesn’t mean you just go and put your money in that stock because this may not be the good time to invest in that stock. The good time was one year back when the stock was down and you avoided that.

So, just do yourresearch first and don’t go on someone else’ instincts.

Avoid Seasonal StocksFor Long term

Investment horizon is the most important thing to decide before you throw your money into something seasonal.

You must have heard stories about investors making money while investing heavily into some particular stock and coming out with heavy profit. But those stocks aren’t good for the long term.

If you wanna go for the long term, you must need to consider strong company fundamentals and balance sheet. Cyclical or seasonal stocks are good for short terms but don’t try to go long term with them.


So, these were the fourmost important points to keep in mind while Investing in the stock market toavoid making losses and keep earning consistent profit.

You can earn consistently only if you can avoid losses.

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What Else do you think can help us in Share Market o earn consistently and Avoid losses.?

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