Following question to me was: which shares can I invest in?
When people go on telling her that the shares were the most risky of all investments (post office schemes, bonds, fixed deposits, gold etc.), she shrugged.
When people asked her if he/she even knew what a share was, she accepted she did not.
People couldn’t blame her.
The stock market has been hogging the public interest. Companies have been coming out with an IPO (Initial Public Offerings) (which is when the company’s primary makes it shares existing to the public by getting them listed on the BSE and NSE exchange). All People want to join the party and make money.
If you make out with her, Following is a tutorial to help you find your basics of stock market correctly. Previous to you invest in the stock market; you should better understand what it needs.
1. You itself a part of the business
When you are investing in the stock market, you don’t invest in the stock market (despite what you think). You can invest in the equity shares of a company. That makes you a shareholder; you now itself a small part of that business exclusive of having to go to work there.
The excellent news is, since you itself part of the company, you are allowed to a share in its profits.
The current bad news related to marketing or company’s is that you are also probable to bear the losses, if any.
That is why investing in the stock market is more risky. If the company does well, you gain profits. If it doesn’t, you lose. There are no guarantees to make profits.
2. In the short-run, the share price can wildly volatile
People say if the company each share price fixed each share at 10 Rs. This is called the face value of the share.
When the market trader is traded in the stock market, this value may move up or fall down it totally depending on demand and supply for the stock.
If all stock market traders want to buy the shares, the price will move up. If nobody wants to purchase the shares, and a lot of wanting to sell them, the price will fall down.
The value of a share in the stock market at any point of time is called the ‘market value of a stock’. Or the ‘price of the share’
A share price with a face value of Rs 10 might be quoted at Rs 55 (higher than the face value) or even Rs 9 (lower than the face value).
So you may have paid Rs 15 for a share which is just quoting at Rs 12. Never panic and sell. If it is an excellent company, the share price will finally go up.
The stock prices will get more effect by the market sentiment and the general direction of the stock market. As an end result, you may look short-term fall in prices.
3. Market Invest for the long-term
The most excellent way to make money is to buy a low price and sell high price. This means you must buy the share when the share price is low and sell it when the share price is high.
That is why you should buy in a bear market. This is a word used to explain the stock market sentiment when it is share price is low and the prices of shares have generally fallen down. The most excellent time to sell is in a bull market, when the sentiment is high and the share prices are increasing.
But it is very hard to time the market is volatile. Realty, no one can do it. If we might, we would the entire be millionaires, wouldn’t we?
That is why, when you are investing in the stock market, it is most excellent to invest for the long-term. Hold on to your shares for some years previous to you has thought of selling them.
Companies raise their sales and book maximum profits over the years. This will finally reflect in the share price, so neglect the short-term slumps.
Initially you can decide that you are in for the long haul, you can ride over the bull and bear runs with no pressure at every one. Over time, your share price will appreciate.
Most of trader is getting an excellent price for your stock, keep selling little amounts at regular intervals. Keep earning profits.
4. Initially decide how much you want to invest
Always keep in mind one fundamental rule in finance — if people are putting something and expected higher returns that are usually because it carries a superior risk.
That is the main reason why not good companies will pay you a higher interest rate for your deposits.
The similar reasoning goes for stocks too – If you are planning to invest in a stock market initially you learn the current market trend they give higher returns than, say, fixed deposits bank because they are more risky. So you invest in the stock market fixed amount of money it depends on your capacity to tolerate the risk. If you are a stock market trader you learn the free stock market trend and how to invest in the stock market just contact well reputed company Trifid Research. He will give the proper free Stock Tips, Commodity Tips, Option Tips and Nifty Tips etc.
If you are young with a stable job, you can invest in stock market big amount of your income in the stock market than, say your parents or colleagues who are close to retirement. If you have many debts to repay, Always avoiding putting lots of your money in stocks.
It’s most excellent to make a decision how much of your savings you will assign to stocks, and stick to that plan. Never get swayed by how much your colleagues or friend is investing.
If you are not enough time to give you market research just go to best stock advisory company and check out all past history that are suitable for you I will suggest you best advisory company Trifid Research that will provide you proper investment tips and suggestions like Stock Tips, Commodity Tips, Option Tips and Forex Tips etc. What segment you are interested and he will give you proper suggestions inter time and exit time related to current market trend.
5. Don’t keep faith just in ‘good advice’
An Intelligent stock market investor should never invest buy shares of companies he never knows much about. Keep faith in ‘advice’ from colleagues or friends is not always a good idea. Do a few bases yourself.
Who is recommending it or it doesn’t matter who is buying the stock. Steer clear of such a way of making a quick dollar. These tips will land you in a bucket.
Here are finding a ‘hot tip’, dig further.
Take seems at the company’s loss and profit and statement, which would have been audited by CA (chartered accountants). There are riches of information here. To make a better understand the information in a Loss and Profit Account, find excellent free Stock Tips, MCX Tips, Option Tips and Currency Tips etc. And also read Want to buy a stock?
Do a few basic calculations on your own. The Price/Earnings ratio (market price/ EPS) and Earnings per Share (net profit/ number of shares) should provide you a fair understanding.
These Stock Tips should get you in progress. Be carefully though. If stocks browbeat you, consider a diversified equity fund.
An MFM (mutual fund manager) will research a lot of companies previous for investing in their shares. This excellent way, you can participate in the stock market even as you leave the research to market experts.
Current Stock Market Trend:
– IT firms are looking positive because of weakness seen in INR, which will enhance their revenues without increasing their sales, as IT companies generates revenue from exports. Whereas, strong US employment data has further underlined the positive sentiments of the US economy, which will further increase the opportunities for Indian IT firms. Infy looks positive above 2221.
– Nifty is expected to trade in range today with the biasness of going further down. Asian Paints yesterday, March 10, 2015 said that the company has entered into and signed a MoU (Memorandum of Understanding) with the Government of Andhra Pradesh to set up a facility of manufacturing for paints and intermediates at Rambilli Mandal, Pudi Village, Vishakhapatnam District, Andhra Pradesh. HCL Technologies and Aegon have decided to work in the domain of digitally increasing customer’s service experience. ABG Shipyard will be watched. With reference to the news titled, “L