Monday, 11 July 2016

How to measure risk while investing and earn best returns using stock tips??

Risk is a factor which automatically comes along with any investment we make.We have various ways by which we can invest our money(savings).

While investing in stock market if a n investor makes use of accurate Stock Tips then he is most like to earn good returns.Before investing a trader must analyze their risk factor attached with the share in which he is investing. Some of the methods which can be used for this calculation are listed as follows:
  • Alpha: This is a risk ratio through which an investor calculate,predict and compare returns. By prediction i mean we can calculate the future date return which can be possibly earned by investing on that security. But this is just a prediction , actual value may vary from it.

          For calculating alpha: α = Rp – [Rf + (Rm – Rf) β]

          here Rp= Realized return of portfolio

          Rm= Market return

          Rf=risk-free rate

Through this one can calculate how much the realized return vary from the actual return it should have earned.
  • Beta: It is a relationship of a security in our portfolio with overall market.By calculating beta a trader can determine volatility of a security with respect to overall market.
           For calculating Beta= covariance(ri,rm)/variance of market

Result of beta gives an exact overview whether the share is performing according to market, underperforming or outperforming and accordingly an investor can decide whether to trade in those securities or not.

Both alpha and beta gives useful conclusions on the shares and helps a lot in deciding whether to trade in this security or not. However market knowledge along with this is required to frame most optimum trading strategy.Some of the ways which can be implemented to earn good returns are listed as follows:


Keep your portfolio as diversified as possible. You can opt for portfolio manager for this purpose. He can design most optimum portfolio on your behalf using his knowledge.

Invest in common stocks who are performing well from long time. As preferred stocks mostly earns some fix dividend which is not sufficient to earn good returns.

Use methods described above and calculate risk factors associated with the share in which you are investing and invest only if that risk can be bared by you unless do not invest in that security.

We have services providers who suggest best stock tips based on their knowledge and market belief which can be used while trading. These tips ensures your required returns.


At the end i would suggest traders that they should not just invest blindly in the market. There are many watsapp group of Daily Stock Tips which can be joined by them. There they will be able to get best recommendation on their trading patterns.

As stock market investment is not that easy as other investment methods are. A lot of knowledge , analytical skills is required to invest in this. So it is better if you invest safely by using some experts advise while you trade.

For more information and best STOCK TIPS Call us ✆ – 0731-6642300 or Visit http://ift.tt/1k8NnLH

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