Stock market as a investment
According to Wikipedia stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately, such as shares of private companies which are sold to investors through equity crowdfunding platforms. Investment in the stock market is most often done via stockbrokerages and electronic trading platforms. Investment is usually made with an investment strategy in mind.
Many investors wonder whether they should invest in stocks. Before deciding to invest, it's important to have an accurate understanding of stocks and trading rather than blindly accepting common myths. Here are five of those myths and the truth behind them.
Investing is not the same as gambling because investing increases the overall wealth of an economy, while gambling merely takes money from a loser and gives it to a winner.
The stock market is not just for rich people and brokers; with the data and research tools now available online, the stock market is more accessible to the public than ever before.
Buying a stock simply because its market price has fallen is not a good strategy; instead, focus on buying growth companies at a reasonable price.
While a stock's price can undergo corrections, the price can continue to rise over the long term if the company is run by excellent managers and provides valuable products or services.
Having a little bit of knowledge can be dangerous in investing; successful investors carefully research their investments or use the services of a trusted advisor.
An investor who lacks the time to do extensive research should consider employing the services of an advisor.
Invest in What You Know and Understand
Will you buy an ABC company which produces Vinyl sulphone easter and dye intermediates even though you have zero knowledge of the chemical industry?
If you will, then it’s like giving some stranger a one lakh rupee and expecting him to return the money with interest. If you are lending money to someone, you ask a number of questions like what he does, what his salary is, what his background is, etc. However, while investing Rs one lakh in a company that people do not understand, they forget this common logic.
The stock investment gives the best returns when you invest for the long term.
Strategies in stock market
Many strategies can be classified as either fundamental analysis or technical analysis. Fundamental analysis refers to analyzing companies by their financial statements found in SEC filings, business trends, and general economic conditions. Technical analysis studies price actions in markets through the use of charts and quantitative techniques to attempt to forecast price trends based on historical performance, regardless of the company's financial prospects
Investing on stock market is the best way to grow one’s hard earned money.One needs to open a demat or trading account to enter the stock market. Different brokers are available in our country to open a demat account. Always go for long term imvestment. It will bring you more returns
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