The funds left over all the operating expenditures of a common man, is required to be saved for the future or is employed to multiply the savings. There are numerous ways to invest but the most fascinating and worthy approach, we can suggest is, to invest in Share Market as compared to other kind of investments like in immoveable property etc. Here are the reasons to choose Share Market for an appropriate investment to raise your money as all sorts of investments include fear, hope and greed. Thus, to opt for a right alternative is always a constructive approach.
Share Market indicates the economic growth and strength of a country. NSE and BSE are the two main Indian Stock Exchanges where trading of stocks, securities and bonds of many listed companies are facilitated. It includes retail investors and institutional investors. Retail investor is an individual investor who generally trades in less quantity. An Institutional investor can be bank, insurance company, mutual funds etc. These investors can be speculators or Long term investors. Speculation includes the buying and selling of particular shares and securities for short period of time. Share market fundamentally is buying and selling of shares. However, the difficult decision is when to invest, for how long to hold and when to sell. These three right decisions make an investor produce long term interest and benefits for him.
When to investinvolves awareness of the procedure of investment and to buy the right share at right price with the help of share brokers and continuous monitoring can make your chances of losing lesser.
How Long to Hold involves awareness of Record Date and Ex-dividend date of securities?
When to Sell decision depends on various factors as the prices of shares fluctuate due to change in demand and supply or any kind of good or bad news. The fundamental rule of trading is when there is large no. of buyers to buy a particular share, automatically the prices will rise and vice versa. Thus, one needs to take the decision according to the facts.
<p.It is not just obtaining shares of few companies and waits unnecessarily for the prices to go up but to take right decision of diversifying your investment across different companies of different sectors can minimize the risk of losing your precious funds. The activity of buying and selling shares includes a lot of excitement, pleasure and thrilling experience that sometimes people go mad and play this as a gamble to earn more and more in very short period of time, that can result into either to earn as much as they had never even expected or to lose all funds they had and become debtor.
One always need to play with mind, not with emotions to avoid the risk as investment for long term in shares is the best way that can produce good returns in different ways. It can be a regular income in terms of dividend that shareholders receive or the option of Long term capital growth by getting advantage of increased prices of shares over a period of time can also be preferred.
Investment in Share Market using these few investment tips can make your option feasible and wise to get good returns if everything is done with extra care and attention. Trading is not such an activity that can be learnt in few days, it's all about learning through experience and mistakes. Initially with extra details, studies and with the help of brokers, using little funds, it can be started. Later, you will have lot of possibilities to opt for, depending upon your budget, need and ability to take risk as lower risk will lower down the returns also.
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