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How to Trade/Invest in a Volatile Share



How to Trade Volatile Shares

Hello Readers: I hope your trading and investing journey is going well. Let’s Learn about how to trade and Invest in Volatile Shares.

Volatile shares are stocks that undergo significant price fluctuations over a short period. These fluctuations can present opportunities for traders seeking short-term gains, but they also come with inherent risks for long-term investors.

  1. Do Your Research

Before venturing into the world of volatile shares, it is essential to conduct thorough research. Understanding the company’s background, financial health, and industry dynamics will aid in assessing the potential risks and rewards of investing in the stock. Armed with this knowledge, you can make well-informed decisions and develop a strategic approach to trading or investing.

  1. Utilize Stop-Losses

Incorporate stop-loss orders into your trading strategy. A stop-loss order automatically sells your shares if the stock price drops below a predefined level. Implementing stop-losses helps limit potential losses in case the share price experiences a downturn. This risk management tool is crucial in the unpredictable world of volatile shares.

  1. Exercise Patience

Volatility often makes timing the market challenging. Instead of chasing quick profits, exercise patience and look for opportune moments to buy volatile shares at lower prices. By adopting a patient approach, you increase your chances of selling them later at higher prices, thereby maximizing your gains.

Why Are Some Shares Very Volatile?

Understanding the factors that contribute to share volatility can provide valuable insights for investors and traders alike.

  1. The Company’s Business Model

Companies operating in industries known for their volatile nature, such as technology or energy sectors, are more likely to experience substantial price swings. The ever-changing landscape of these sectors can lead to sudden shifts in investor sentiment, causing stock prices to fluctuate.

  1. The Company’s Financial Performance

A company’s financial performance significantly impacts its stock’s volatility. Poor financial results and uncertainties about a company’s future can drive investors to sell, causing wild price swings. On the other hand, robust financial performance and positive growth prospects may stabilize a stock’s price.

  1. The Overall Market Environment

Market conditions and economic factors play a vital role in determining share volatility. During times of economic uncertainty or market instability, shares are more likely to experience greater price fluctuations. Conversely, periods of market stability may lead to reduced volatility.

Lets recollect and take an example of some popular shares of why the Stocks are more Volatile as Compared to others to get a better view of how to Trade:-

You all have must heard or seen Adani shares are considered volatile. These may be due to several factors. Firstly, Adani Group is involved in a wide range of businesses, including ports, power, and coal mining. This diversification exposes the company to various market conditions, making its stock price more susceptible to changes. Economic slowdowns or shifts in specific industries can significantly impact Adani shares.

Secondly, Adani is a relatively new company compared to others in the market, and it may not have established a long track record of consistent profitability. This lack of historical data can make investors uncertain about the company’s future prospects, leading to increased volatility in the stock price.

Lastly, Adani shares are popular among retail investors, who may engage in frequent buying and selling activities. The higher trading volume driven by retail investors can contribute to increased price fluctuations and overall volatility in the stock.

On the other hand, TCS (Tata Consultancy Services) shares are relatively static compared to Adani shares. TCS is an established company with a long track record of profitability in the IT services sector. The company’s business is less sensitive to sudden market changes, resulting in a more stable stock price. Additionally, TCS shares may not be as popular among retail investors compared to Adani, leading to lower trading volume and reduced volatility.

Here is a table that summarizes the key differences between Adani and TCS:

Business diversificationHighLow
Profitability track recordShortLong
Popularity among retail investorsHighLow

In summary, the volatility of Adani shares can be attributed to its diversified business, limited track record of profitability, and popularity among retail investors. Conversely, TCS shares are more stable due to the company’s focused business model, long-standing profitability, and lower retail investor interest.

How to Invest in Volatile Shares

Investing in volatile shares can be rewarding but requires a thoughtful and calculated approach to minimize risk.

  1. Diversify Your Portfolio

As the old saying goes, “Don’t put all your eggs in one basket.” Diversifying your investment portfolio across various industries and asset classes can help spread risk. If one of your volatile shares experiences a sharp decline, the impact on your overall portfolio will be cushioned by the others.

  1. Embrace Long-Term Investing

Volatility can be unsettling for short-term investors. Embracing a long-term investment horizon allows you to ride out short-term fluctuations and potentially benefit from a stock’s growth over time. Patiently holding on to well-researched stocks can lead to significant gains in the future.

  1. Continue Using Stop-Losses

Reiterating the importance of stop-loss orders, they serve as a crucial tool in managing risk when investing in volatile shares. Having a predefined exit point helps protect your capital and prevent significant losses.


Investing or trading in volatile shares can be an appealing prospect for those seeking potential rewards, but it is not without risks. Thorough research, strategic thinking, and risk management practices are key to navigating this volatile terrain successfully.

For those interested in capitalizing on the opportunities presented by volatile shares, consider implementing technical analysis to identify trends and patterns in share prices. Staying abreast of the latest news about the company and its industry is also essential for making informed investment decisions.

Remember, resist the temptation to panic sell during market downturns. Volatility is a normal part of the stock market, and by adhering to a well-thought-out investment strategy, you can potentially profit from the fluctuations in volatile shares.

Key Takeaways:-

  1. What are volatile shares? Volatile shares are stocks that experience significant price fluctuations over a short period.
  2. What should I research before investing in volatile shares? Before investing, research the company’s background, financial performance, and industry dynamics.
  3. How can stop-losses help in volatile share trading? Stop-losses automatically sell your shares if their price falls below a specified level, limiting potential losses.
  4. Are volatile shares riskier than stable ones? Yes, volatile shares come with higher risk due to their price swings, but they may offer greater potential for short-term gains.
  5. Should I invest in volatile shares for the long term? While volatility can be challenging for short-term investors, holding volatile shares for the long term may yield higher returns.
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Finance World

Why Muthoot Finance is not affected by the small cap and mid cap fall?



This week, if you’ve been keeping an eye on the stock market, you might’ve noticed something unusual. While the small cap and mid cap markets took a serious dive, Muthoot Finance seemed to just avoid it, falling by a mere 2%. So, what’s their secret?

What is the business of Muthoot Finance?

First up, Muthoot Finance has a strong foothold in gold loans. Now, why does this matter? Well, when other investments seem risky, people tend to fall back on gold because it’s considered a safer bet. With gold prices staying high, Muthoot’s gold loan business is like a stable ship in a stormy sea.

Muthoot Finance target price by Kotak

Kotak Institutional Equities is pretty optimistic about Muthoot, recommending a “buy” with a target of Rs 1,500. They think Muthoot is in a prime spot to grab a bigger slice of the gold loan market. Plus, with some Non-Banking Financial Companies (NBFCs) hitting a rough patch, Muthoot has a clear ground to expand and grow further. Unlike NBFC, Muthoot has a strong ground presence with offices and branches, they have physical repo with their customers, unlike NBFC who operate from AC offices.

New Friends and New Frontiers

Muthoot isn’t just sitting pretty with its gold loans; it’s also making moves. It teamed up with Evfin to finance electric two-wheelers across India. And there’s more – Muthoot FinCorp has brought Veefin Solutions on board to kick off supply chain finance operations. This means they’re planning to lend a hand to small and medium businesses, helping them keep the wheels turning. So, its a great news that Muthoot is expanding into fields that are not dependent on gold loans alone.

Spreading Their Wings

Muthoot Microfin, a part of the Muthoot Group, is pushing into new territories too. They’ve just set foot in Telangana and have their sights set on Andhra Pradesh next. This move is about bringing more people into the financial fold, especially in places where banking services might be hard to come by. This gives an edge to Muthoot over banks and NBFC.

Are you wondering whether to invest in Muthoot Finance or Manappuram Gold? Take a look at this:

So, What’s the Deal?

While the market’s mood swings have sent some companies into a pit, Muthoot Finance has managed to stay stable. Thanks to its focus on gold loans, strategic partnerships, and expansion plans, it’s not just surviving; it’s set to thrive. So, while the rest of the market might be catching its breath, Muthoot is marching on, steady as ever.

Keep following us for more such latest news on TradeAlone.

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Finance World

Infibeam Avenues Ltd expands into the US Market with an Acquisition



Hello, digital pioneers and fintech enthusiasts! Let’s dive into a groundbreaking announcement for Infibeam. Infibeam Avenues Ltd, an AI-powered financial technology, is embarking on an exciting journey by acquiring a 20% stake in XDuce. XDuce is a mastermind in enterprise Application and AI development based in the United States. This bold move involves an investment of USD 10 million. This also marks a significant milestone in Infibeam Avenues Ltd’s global expansion narrative.

XDuce: A Hub of Innovation

Nestled in the heart of New Jersey, XDuce boasts a team of over 150 software developers. They’re a team behind the curtain for marquee clients like Bank of America and Morgan Stanley, to name a few. XDuce’s expertise in business application implementations and transformation is nothing short of legendary in the financial and insurance sectors of North America.

A Fusion of Giants

So, what happens when Infibeam Avenues Ltd and XDuce comes together? Infibeam Avenues Ltd wants to merge it’s AI Solutions and CCAvenue Payments business into the network that XDuce has built. This collaboration is about expanding business footprints, revolutionizing how AI-driven technologies are employed in fraud detection, authentication, and risk identification in the financial sector of the US.

Redefining Financial Technology

Imagine a world where transaction fraud is no longer a looming threat, thanks to state-of-the-art AI technologies. That’s the vision Mr. Jay Dave, CEO of XDuce, and Mr. Rajesh Kumar SA, CEO of Phronetic.AI, share. By integrating PhroneticAI abilities with XDuce’s solutions, they will offer businesses and consumers in the US with security and efficiency.

The Road Ahead

According to Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd, international business currently contributes less than 10% to the company’s total revenue. But with strategic moves like this, they’re aiming for international business to soar to 30% of total revenue in the coming years.

Infibeam Avenues Ltd at a Glance

Infibeam Avenues Ltd is at the forefront of offering digital payment solutions and enterprise software platforms across the globe. With a transaction worth INR 4.5 trillion (US$ 54 billion) processed in FY23, and a client base of over 10 million. Spread across digital payments and enterprise software platforms, they’re leading digital revolution.

Wrapping Up

The strategic investment in XDuce is a bold step towards Infibeam Avenues Ltd’s vision of global expansion and innovation.

Stay tuned with Tradealone, as we continue to follow this exciting journey of Infibeam Avenues Ltd. Stock price for Infibeam closed 7% up today. We also see a continues profit growth for Infibeam Avenues over the past 4 years. Although, we cant recommend a buy or sell call for the stock, however we feel this stock deserves your attention.

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Finance World

Satin Creditcare Expands its Reach by entering Telangana and Andhra Pradesh, stock has doubled so far this year



In a country where financial inclusion remains a major yet challenging goal, the expansion of services to underbanked regions marks a significant step forward. Satin Creditcare Network Limited (SCNL), a leading name in microfinance, announces its strategic entry into Telangana and Andhra Pradesh. This move not only amplifies SCNL’s presence to 26 states and union territories across India but also underlines its commitment to empowering the economically marginalized communities with vital financial services.

A Leap Towards Nationwide Financial Inclusion: SCNL’s mission to drive financial inclusion is more than just a business expansion; it’s a pledge to reach the unreached. The opening of two new branches in Telangana (Warangal and Huzurabad) and one in Kadiri, Andhra Pradesh, is a testament to SCNL’s dedication to making financial services accessible to all, especially in rural and semi-urban areas where banking facilities are scarce.

Why Telangana and Andhra Pradesh?

The choice of Telangana and Andhra Pradesh for SCNL’s latest expansion is strategic. Both states have shown promising economic growth yet house significant populations that lack access to basic financial services. By stepping into these states, SCNL aims to fill this gap, offering microfinance solutions that can serve as a catalyst for economic empowerment and sustainable development. Moreover, Telangana is a fast growing hub for Pharma industry as the state capital Hyderabad leads the way.

SCNL’s Blueprint for Empowerment

SCNL’s approach to empowerment through financial inclusion is holistic. Focused on rural India, with 76% of its operations dedicated to rural communities across 97,000 villages, SCNL is not just providing financial services but is also contributing to the rural economy’s growth. This expansion is a stride towards enabling access to credit for the underserved, thereby fostering an environment of economic resilience and growth.

A Message from the Leadership

Mr. HP Singh, Chairman cum Managing Director of SCNL, remarks, “Our expansion into Telangana and Andhra Pradesh is a significant milestone in our journey towards a financially inclusive India. It’s not merely about increasing our geographical footprint; it’s about touching lives, empowering the marginalized, and contributing to the nation’s economic fabric. We’re here to make a difference, one individual, one community at a time.”

Ashirvad Microfinance is a fast growing company as well. Check it out if you are interested.

Beyond Expansion – A Look at SCNL’s Innovations

SCNL’s innovations extend beyond traditional microfinance. The institution’s portfolio includes loans to MSMEs, affordable housing loans through its subsidiary Satin Housing Finance Limited (SHFL), and the commencement of MSME business through Satin Finserv Limited (SFL). These initiatives demonstrate SCNL’s commitment to diversifying financial solutions that cater to various needs of the underserved.

The Road Ahead for SCNL

As SCNL carves new paths in Telangana and Andhra Pradesh, the future looks promising. This expansion is not just about growth but about deepening the impact of financial inclusion across India. With continued innovation and a steadfast commitment to its mission, SCNL is poised to create significant strides in empowering communities and fostering economic development across the country. Moreover, the stock price for Satin Creditcare has almost doubled in the last one year.

Conclusion: SCNL’s expansion into Telangana and Andhra Pradesh marks a new chapter in its mission to facilitate financial inclusion across India. By reaching out to the economically marginalized sections of society, SCNL strengthens its role as a catalyst for economic empowerment and sustainable development. As we watch this journey unfold, the prospects for a financially inclusive India appear brighter than ever. Despite that we do not see any positive signs from the revenue and profit growth of the company over the last 5 years. Thus, we feel that investors must be cautious while investing here.

Remember that microfinance companies also face competitions from the major banks. However, as this move is towards uncharted regions of Telangana and Andhra, we do not think that the banks would pose any risk to Satin Creditcare.

Call-to-Action: We invite you to join the conversation: How do you think SCNL’s expansion will impact financial inclusion in Telangana and Andhra Pradesh? Share your thoughts and insights in the comments below. Let’s discuss how financial empowerment can transform lives and communities. Also, please follow Tradealone for more such latest updates.

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