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Nov 11, 2013

Is it right time to enter share market?

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 It is not an easy time to be an investor. Even though you may be spoilt for choice, there is a high degree of volatility across asset classes. This means that one has to be extra cautious while choosing investments. Whether you are opting for equity, fixed income, property, or gold, the current environment will punish you for rash or untimely decisions. For those who have just started saving, taking the initial steps into the world of investing is even more daunting. It's the same for anyone exploring a new asset class.

Many of us choose to stay away from the stock market because of the risky nature of such investments. For some, it is akin to gambling in a casino. However, we also hear of stories where people have made fortunes from stocks. Some of your friends, relatives, or acquaintances will recount their experiences of doubling or trebling their money within a short span of time. Naturally, this gets you thinking. Should I try my hand at the stocks game? How can I make handsome gains from equities? More often than not, you take the plunge. You open a demat and trading account, and make your initial purchase—possibly a strong blue-chip company that you admire, or an emerging company you have heard a lot about. Either way, this may not be the ideal route for everyone.

Experts of stock markets are often found debating on business channels, particularly on big rise or fall of index. Long time investors are rarely impressed by their opinions because they are well aware of the ethics of stock markets. Here are few suggestions for new investors in stocks:

· Select one or two stocks for initial purchase.

· Wait for the time when your stock reaches at such level where you can sell them and book profits.

· Avoid investing large amounts at one go. Buy small quantities at regular intervals and try to get a feel of market.

· It is difficult to catch a stock at its lowest price. Buy a stock in which you have strong conviction.

· Often first investments are driven by friendly tips or prevailing hot trends. Traders love beginners as they chase the hot trends and drive prices higher. However the traders are out, leaving beginners in the thinking tank. Avoid such race and believe in your stocks only.

· Stock create enormous wealth, but do not expect to hit the jackpot early on. You might not earn good returns initially and may in fact suffer losses. Stocks are inherently volatile. Even a good stock can fall if the market turns bearish. Do not let fear and greed drive your investments decisions.

November 2013 witnessed sensex at all time high level. The experienced investors and intra day players took advantage of the rise and sold stocks. However the index after Diwali is again on declining trend as foreign markets are also sailing in the same boat. But one should not take it as negative sign as the basic rules for share markets describe the phase as natural phenomenon. PR 24x7 Network Limited besides extending excellent image management services to clients of varied sectors, also provide tips for intra day and long time investors. If you are interested to earn money from share market.


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