Playing the Stock Game

Experts say we are in the early stages of a bull run. We tell you how you can make the most of it.

- Tripti Kedia

Every Diwali, we ask our favourite stock analyst one question: what is the outlook for the next Samvat? And every year, we muddle through a half-baked projection that has equal chances of being a hit and a miss.

So, let’s see what analysts are predicting for the next year. But wait! Does it matter? Not really, say some of the world’s best investors — as your returns will not depend upon your playing or not playing the numerical guessing game but on how well you manage risks while investing your money. Markets, they say, will keep moving up as well as down, and second-guessing their movement is well nigh impossible. The only thing an investor can do is to keep risks under control while going for the best possible results.

“It is the nature of markets to be volatile; you can’t avoid that. One must learn to stomach volatility and focus on avoiding risks. This is what all great investors do,” says Dhananjay Sinha, Head of Research, Economist & Strategist, Emkay Global Financial Services.

MIND THE RISK