Follow these eight strategies to win in the stock market game 2021

The stock market fell sharply in March due to the Corona crisis and there has been a sharp recovery in the market again after the lockdown was relaxed. In view of this situation, more than 25 lakh people have opened new Demat accounts after March to get more returns in a short time. New people investing or trading in the equity market often make some common mistakes.

Let's know, what are the eight strategies to win in the stock market game 2020.

There are some common mistakes that can be avoided and can be easily earned by a win in the stock market game 2020.

Do not invest in a company you do not understand

This is the first and basic rule of investment, which every investor should follow. By the way, it is difficult to expect every man to understand every company. Despite this, we should try to at least have a basic understanding of the company's business, such as what the company does and how it stands in front of its rival companies.

Do not be emotional with your investment

The worst investment decisions are those that you make on the basis of emotions or whether your emotions affect your decision-making process. Rather than looking at how the company performs and its fundamentals.

Stick to your investment principle

How much the company will grow depends on the company's expansion plan, revenue growth, market share, points. If you find any of these things going wrong after investing, then review immediately.

Keep balanced diversity in the portfolio

Often we find that investors either do not diversify their portfolios or diversify too much. While keeping the balance between these two is most important. Keep a balanced diversified portfolio to avoid risk.

Do not be afraid of taking losses, it is not a big deal 

Everybody, at some time, takes wrong decisions in some of the other stock, it is not a big deal. It is also part of our learning process. If you have taken the wrong shares and the losses are happening then do not be afraid of losses, get out of it.

Do not chase well-performing stocks

Thousands of shares exist in the market and you cannot buy all. There will always be at least some stocks in the market that will give more returns than your shares. This happens not only with you but also with professional investors. So stick with your stock, provided they are performing as you expect.

Regularly review the investment portfolio

Change is the truth of this world, which applies to everything. Changes in the business model, product, technology, etc. can affect the businesses in which you have invested money. Therefore, from time to time, you should review your investment portfolio. It balances investment.

Do not blindly follow another's portfolio

It is not wrong to look at the portfolio of successful investors and you can also learn from its investment decision in the beginning. Simultaneously develop your understanding of investment. In the long run, it is dangerous to follow each other blindly, because every investor has different factors and plans. Keep your risk-taking ability and goals in mind.