1. In direct equity shares investment, a good way of minimizing losses during turbulent times is to place a stop-loss, especially in case of shares that are very volatile.
2. Setting a stop-loss gives you a little gambling option because you do not offload your shares right away, but only sell them if the price falls to below your comfort level, thereby losing less than you might have if the share crashed.
3. However, as stop-loss orders can also result in opportunity losses, stop-loss triggers should not be very close to the market price of the share because any intra-day volatility may trigger off its sale.
4. In mutual fund investments, the key during turbulent times is to remain a strategic investor, as opposed to being a tactical or event-based one.
2. Setting a stop-loss gives you a little gambling option because you do not offload your shares right away, but only sell them if the price falls to below your comfort level, thereby losing less than you might have if the share crashed.
3. However, as stop-loss orders can also result in opportunity losses, stop-loss triggers should not be very close to the market price of the share because any intra-day volatility may trigger off its sale.
4. In mutual fund investments, the key during turbulent times is to remain a strategic investor, as opposed to being a tactical or event-based one.