If you have ever made investment in stock market, then you must be aware of how to invest in stock market, so now you need to take a step forward. As an amateur, you might have already taken help to plan your investments and have gone by the decision. However, this does not suffice. You need to keep track of your funds. So, the learning does not stop here. You only have understood the evaluation and finding the good investment way. Now the second step is to see the movement of these stock investments with the market. There are many factors that can help you here. But the most important one is the ß of the stock. ß i.e. Beta of the stock is the relation of your stock with that of the investment market. It plays an important role when you have multiple investments made. So before getting into this, we need to learn stock market movements in bullish and bearish phases.

You already are equipped with the primary meaning of bullish and bearish phase – former being the uptrend of stock index and its prices correspondingly whereas the latter implies a downhill ride of the index and the prices as well. Not all prices move in accordance to the index or the market. That's true. Some price movements are directly proportional to the index whereas others are inversely. So it is very crucial to understand the relation of your stock investments with that of the stock market. And here, comes into picture the ß of your stock that defines the relativity or correlation coefficient of your stock and the index. It basically defines the degree or extent of variance of the stock with the stock index into consideration.

It is good to have a positive ß. However, if you have investments in multiple stocks, then you should not go for all positive betas. Why? Let us understand this in an elaborative way. If all the stocks have positive betas, then it would be great if its index rises. However, in case if the market dips, then there is a problem. All the bonds would be affected negatively and you will need to bear the loss to a great extent. However, if you balance your portfolio i.e. selection of investments so that you have a mixture of positive and negative betas, then this provides a hedge to your investments. Your risks get lowered considerably, rather they get evened out. So you can at least breakeven with your investments if not making profits.

There are more parameters to get hold of the investments. If you are wondering how to arrive or know the value of stocks, then you need to get in touch of some broker.