Wise decision makes you profit in share market

   It is not possible to always make money from the stock market, because all types of investments have risks and daily ups and downs. Still, if you stick with a planned, long-term approach, you can avoid too much risk, stay steady and get predictable returns.


Use the stock market this way to get safe, ongoing income:

1.Think Differently:

  •  Your Wealth Is Based on Earnings and Risk Management Instead of expecting not to lose, set   your sights on: Having income that lasts over time

     •  The value of the asset changes very little. Keeping your money safe and secure as time goes on

 

2. More Focus on dividend paying stocks

  • Prefer to buy stock in companies that make regular, strong payouts, like with Johnson and Coca-cola
  • Your decision could be to leave your dividends in the account or take them out to cover income needs.
  • Select stocks from the group of dividend Aristocrats (Those business that paid dividends for at least 25 years

 

  3. Consider using ETFs and Index Funds

  • Investments available for little cost but with mix strategies like:
    • S&P 500 ETFs such as SPY and VOO
    • Dividend focused ETFs , you can select include VYM, SCHD and DVY.
    • The make money from options, but come with certain drawbacks.

      Access to many investments and less risk than holding one stock

      Growing slowly, may lose out to industries that are booming right now

 

 4. Place options called covered calls, as well.

  •        When you sell covered calls on your stocks/ETFs, there is the potential to make money every month.
  •      It performs smoothly in a largely unchanging market rate.

·       

  5. Place Part of Your Money in Different Areas of the Market

  •          Spread your investments to avoid major loss from a single sector and REITs can help you             reach your yield goals. You may want to consider REITs if you’re interested in potential                 better income.
  •        Regular income in your retirement accounts is possible with bonds or bond ETFs.

·                      


  6. Grow your money in Systematic investment plans (SIPs)

  • Putting your money in regularly but small amounts helps manage ups and downs (rupee cost averaging / dollar cost averaging).
  • Service is highly useful when the markets shift rapidly.

 

   7. Let your investments be informed by a Conservative Allocation Model.

      Example:

  • 50%  in Dividend stocks and ETFs
  • 20% in Bonds
  • 10% in Covered calls/options
  • 10% in REITs
  • 10% in Cash/reserve (for dips)

 

   8. Don’t Make These Common Errors

      •   Looking for stocks with fast growth or because they are trending

      •   Purchasing or selling stocks influenced largely by emotions

      •   Putting too much of your own funds at risk

      •   Skipping the expense of taxes and fees


   9. Rebalance your portfolio at least once a year or once every four months.

  •       Registry users can either reinvest their earnings or adjust their shares as the market         changes
  •       Keep your holdings in line with the future you want to have

·     

  10.   Consult professional’s help (Optional)

  • A fee-only advisor can plan how to use your income to meet your goals.
  • Many robo-advisors offer investors risk-managed portfolios that are handled automatically.

 

Reality Cheque: There is No Such Thing as a "Zero Loss" Strategy

No matter how carefully things are organized:

 • Not all dividend payments are assured.

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