Investing in the stock market
- Posted by CMIL
- Categories Uncategorized
- Date June 19, 2021
- Comments 0 comment
Stock market is Aggregation of Buyer and Sellers.It is economically a network of economic transactions, stocks also called as shares,
which represents ownership claims on business these may include securities listed on a public stock exchange as well as only privately traded stocks.
Stock market is a financial market which involves Buying and Selling of securities which means purchase of stocks in different quantities.
Investing in the stock market is not easy. The first question that comes in mind is how to invest?. Thinking about investment is quite easy, but its difficult
to find out the stocks. There are several questions in mind like which stock to buy, what price to buy, looking at sector-wise stocks, growth of the company.
Starting from intraday trading to different terms like short term(2 days to 45 days), medium-term(2 months to 1 year), and long term(1year onwards).
Right now the trend is of the short term due to few important factors like concern over long-term stability, potential growth, expected returns, low risk, and no much time-consuming. When you plan to invest, need to look at both fundamental and technical aspects of a particular stock. Fundamental includes company’s
debt, past and future projects, balance sheet including profit and loss statement(5 years for long term compulsory)short and medium terms are fine with
current trends in the market, factors affecting global markets also for few stocks, company’s top-level management, fraudulent regard with the company, products
of the company and share hilding patterns. Technical analysis includes only charts of different frames. Different candlestick patterns are widely used to analyze
a stock. charts ranging from a week to years are the best way to find out stock along with fundamental analysis. Japanese candlesticks are widely used across
the global market.
There are uncertainties prevailing in the markets. The best example is the covid pandemic which has right now affected all the markets globally. It’s difficult
to predict a market after a long 5 years, no one no what’s going to happen. The way life changes market also changes. Picking up the right stocks at the right time is
not easy for all the investors. Success in investing depends upon many factors which change bit according to the trends or scenarios in the financial market.No
one can assure a 100 percent guarantee of returns on any stocks, which is the most challenging part with regard to any investment. Difficult to identify the risks
related to markets especially internal factors. Unawareness of internal factors sometimes may lead to huge loss. Fraud is part of internal factors. It’s
very much important to calculate the loss in the investment field along with profit. Looking only at the profit is not actually the right way of thinking. Thinking in
the financial market sometimes takes a lot of time.Wasting much more time in markets is not a good sign.
Profit and loss are a crucial part of any investment. It’s very important to look at the kind of returns getting back, therefore make a provision on investing
and idle return from the available resources, since uncertainty is also a part of it. Investing also a little different for beginners, since they have to more
careful with related news happening in regard to a specified stock.Need to start investing by 30 to 40 percent of savings for unmarried investors and 20 to 30
percent of savings for married investors. Comparing investment with the bank also plays a pivotal role, because there are returns that are very low. Today’s investing makes
us think more than twice about whether to invest in a bank or not since Everyone is looking for good returns.A beginner can’t make much money in the market, since the high risk
is involved in it, which a beginner can never think of.
Intraday is playing a very important part in the stock/share market for a long time. According to the assumptions at least 85 to 90 percent of investors in intraday
incur losses every day. It might slightly change in the upcoming years depending upon policies and norms of exchange as well as the government. Risk in intraday is
success ratio, which is very low. It’s really difficult and challenging to find out perfect stocks for intraday.At least 75 to 80 percent of accuracy level is
essential to achieve success in intraday. It’s not that kind of easy anyone thinks, it can wash out all of the money invested within a short span of time.
Generate a specified sum of money for a specific goal in life.
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