Algo Trading


Stock Market Blogs

How Do Investors Deal With Volatile Markets? November 18 2017Market Psychology

Visit Count: 1110

How Do Investors Deal With Volatile Markets?

Share market is highly unpredictable. Some days can be good while some bad. No one can really predict with surety which way the markets will swing in the short run. Often the tools for stock market analysis also fail. The reason for its unpredictability is the volatility associated with the markets. During volatile markets, investors are often left confused regarding their investment strategy. The best way to deal with volatility is to maintain a long term strategy and avoid the short term fluctuations. In this article, we shall learn more about the volatility in the stock markets and how to deal with it.

Before going ahead let us understand the term volatility.

What is the Volatility of stock market 

Volatility means a sharp rise or fall in the prices of securities or overall market performance within a short span of time. Here the stock market behaves irrationally by showing big swings in the negative or positive directions. Generally, upward volatility (i.e. when price moves up) is considered good by the investors, while on the flip side, downward volatility (i.e. when price moves down) creates panic and concern amongst the investors leading to radical decision making.

How to Deal with Volatile Markets?

We at Indira Securities, share with you some tips to deal with volatile markets.

·     Staying Invested and Stop Tracking: During volatile market, the best strategy is to remain invested in the stocks without looking at the daily price fluctuations. By staying invested for the long term, you not only avoid volatility but also enhance the chance of making more returns from your investment. Staying invested can fetch you returns that you were looking for. This is only possible if you are a long term investor and don’t get affected by the volatility in the market.

·     Don’t Change Your Plans: When you enter the stock market you have some goals and plans to achieve higher returns. When markets go into correction and ultimately into volatility, stay firm on your old plans. Do not take a bad decision in panic which can prove to be regretting in future. Just reassess your strategy or change the course whenever needed. Changing the whole strategy will lead to bad decision making and loss to your portfolio.

·      Diversify: Diversifying the portfolio is always considered as the best strategy. A proper mix of stocks from different sectors helps in reducing the risk. Like, a portfolio having stocks from steel sector, pharma sector, media sector, etc. will diversify your risk. If there is a fall in one sector, you will have some other sector in your portfolio that is fetching you profits. So use technical tools for stock analysis and only then make a diversified portfolio.

·      Risk Management: In volatile markets, investors should have efficient risk management strategies. Being active in such times can help you make more money or protect you from future losses. Volatility often brings down the prices of good stocks and this is the time when you can take the opportunity to add more stocks to your portfolio. If you have high beta stocks in your portfolio, you can manage the risk by swapping them with defensive and safe stocks at the time of volatility.

·        Take Advice: Advice from a knowledgeable person or firm can help you deal with volatility in a much better way. The advisor can be a person with good experience in the stock market or a brokerage firm. When you feel that things are not going in your way, professional and experienced people’s advice is very handy. It will not only save you from incurring losses but help to carve out strategies for your portfolio in the long run when volatility strikes again.

·       Have Cash in Hand: It is not always prudent to keep all your money invested in the stock market. Keep some money in hand so that you can grab the opportunity. When volatility hits the market, the stock prices fall down drastically and this is the time when cash in hand comes handy. Purchasing the shares during such times when prices are at rock bottom can help you make higher profits in the long run. So always have some cash in hand that can be used when the market crashes.

Stock market volatility is a part and parcel of the stock market. When you enter into stock market, come with acceptance of the fact that every day would not be a good day for your portfolio and when the volatility strikes, it can get worse. However, by reading the above points you can handle the situation in a much better way. By following the above tips you can certainly protect your portfolio from losses and grab the opportunity from falling markets.

Indira Securities is a leading stock broking firm. We provide diversified services to our clients ranging from trading in stocks, commodities, currency and derivatives. We give our clients share investment advice using technical analysis tools. We are known for providing stock market strategies that work and reap benefits to our clients. Open a Demat account with us and enjoy our hassle free services. We also provide trading and investment facilities through the use of our mobile application. For any information or query, you can contact us on our phones numbers or drop us an email.


Blog Enquiry

Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.


  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost

Dear Investor,
As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educative material in the form of text and videos, so as to become an informed investor.
We believe that an educated investor is a protected investor !!!

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
"No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
Dear Investor if you wish to revoke your un-executed eDis mandate, please mail us with ISIN and quantity on by today EOD."

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201




Indrendu Joshi. Email: Call : 0731-4797275

Investor grievance complaint :