4 Tips for Stock Market Investing
People make money from business activities.Share
market also does the same thing.you can get returns by buying shares of any company listed on stock exchange.What we need is that identifying the right opportunity.Great Investors such as Warren buffet and Peter
lynch created amazing wealth from stock market.They proved, making money
from stock market is not a herculean task.Let us check how it is possible for all.
Most of the people start to
learn seriously only after making loss in stock market.Share market tend to move as
per supply and demand mechanism. This creates profit or loss for an investor.Buyers
and sellers are fixing the price of a share,based on fundamental and technical
factors.
Fundamentals means the financial strength of a company.Technicals denote the prevailing trend in price.No one can make money without knowing these basic things.So,learn the basics of fundamental and technical analysis of a company.
Fundamentals means the financial strength of a company.Technicals denote the prevailing trend in price.No one can make money without knowing these basic things.So,learn the basics of fundamental and technical analysis of a company.
2. Know the Benefits
Shares provide ownership in a listed company as per your investment.Companies
are listed on stock exchanges after Initial public offer (IPO) to the public. Investment in shares include Price
appreciation ,Dividends and Bonus.No other assets give all these benefits.We
will get only price appreciation from other investments such as gold and
property. Really,the biggest returns arise from bonus factor.But,it will work
with long term perspective only.So,patience is important for making money from
stock market.
3. Understand the Risk
Risk factor is not same with all stocks.Large cap stocks are
less riskier than penny stocks.but,returns are higher in small cap
stocks.So,High returns are not possible with low risky investments.Economic and
political news and rumours may affect it.Industry trends are also important.The
greater the returns, the bigger the risk.
4. Do your home work
Read the financial statements of the company before you put
money. Examine the net profit,revenue and financial ratios. Don't forget to check at least 5 years track record
before an investment decision.Financial statements are available in websites of the company and stock exchange.Next step is identifying the currend trend with the help of technical analysis charts.If the home work is done, you can make money from share market.
Links :
National stock Exchange
Bombay Stock Exchange
Links :
National stock Exchange
Bombay Stock Exchange
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