There are many people for whom stock market trading is all about selling and buying stocks. Making money for them in stock market needs luck and nothing else and hence they prefer to stay away from the stock market. But the reality is far from this. Like any other investment stock market investment is also a calculated decision that you need to take with proper care and only … [Read more...]
Rules of investing is the stock market
Investing falls within a broader gamut of financial planning. It requires considerable thought and groundwork. Here, we have outlined some important guidelines to be borne in mind while planning your finances. 1. Do your homework Before investing your money, ensure that you have done your homework well. It is 'normal' for sales pitches to be aggressive. Most sales … [Read more...]
Donts for stock market investment
What you must NOT do 1. Don't panic The market is volatile. Accept that. It will keep fluctuating. Don't panic. If the prices of your shares have plummeted, there is no reason to want to get rid of them in a hurry. Stay invested if nothing fundamental about your company has changed. 2. Don't make huge investments When the market dips, go ahead and buy some … [Read more...]
Dos for stock market investment
What you MUST do 1. Get rid of the junk Any shares you bought but no longer want to keep? If they are showing a profit, you could consider selling them. Even if they are not going to give you a substantial profit, it is time to dump them and utilise the money elsewhere if you no longer believe in them. Similarly with a dud fund; sell the units and deploy the money in a … [Read more...]
Basic Trading methods
There are two basic ways exchanges execute a trade: On the exchange floor Electronically Exchange floor Trading on the floor of the New York Stock Exchange (the BSE) is the image most people have thanks to television and the movies of how the market works. When the market is open, you see hundreds of people rushing about shouting and gesturing to one another, talking … [Read more...]