Equity Market Investment provide maximum benefit that could be taken from market if you know the way of proper investment. Those days are gone when investment were only for some limited persons who expert the system.
Now in the age of internet everything become in your finger tips. Investment in Stock market became very easy these days. This new platform became open to all and beginners also well come to learn, understand and also invest to gain.
Rewards and losses are the part of the investment in stock market. People invest in the small amount of share of a company. If the choice of company is perfect then your investment gain maximum profit or the choice of company is wrong your investment could lost with the company’s losses.
Before Start Investors should Focus on some Steps below :
Focus On To Gain Knowledge About Equity Market And Stocks
First of all follow the daily news about National and International Geopolitical movement, breaking news, finance news and also share market news. This is most important to became updated all latest news. The shares of Company you short listed to invest, find out their track record of past performance. Know how to read charts of the stocks. Find out the resistance and support of the stocks.
In mutual fund investment no need of knowledge, because fund managers attend your fund. But in direct share investment investors need knowledge for attend their own fund as fund manager. Always recommend try to make a short list of good performed stocks and invest in small amount regularly.
Equity Market Investment Should Be On Diversified with Different Sectors
Start to make portfolio of shares with large cap stocks. Large cap stocks like ITC, LT, Tata Power, Tata Steel, banking stocks like HDFC, SBI, ICICI Bank. These are well known good stocks that has a good track record of high return.
People have a vision on share market that he become rich fast because he has opted for share investment. That is not true. Yes, some shares can surprise you for big return. But simultaneously some shares also surprise you for lowest return. In equity market share prices depends on the performance of the relevant company.
If company runs outstanding performance in all aspects the profit margin will be higher and share price also surprise you on higher side. On the other side if company performance is down, its profit margin will go down and it effects on share price, that will also surprise you on the down side.
Company’s performances reflects on quarterly result, which is important to watch. Where investors get all information about the profit/loss and future outlook with upcoming projects and also fundamental scenario of the company.
In that way the result of year on year basis previous return of the of the company, decide the fundamental and status of it.
Choose Shares Sector Wise Cautiously In Equity Market
The success of Equity Market investment depends on how cleverly investor choose their stocks. Most of the people intended to mistake of choosing proper diversification of stocks. Instead of doing own research they follow the dubious calls which are easy available in the market. Result loss of money and disappointing.
Before buy any stock ask yourself, Are you enough confident about it’s past background ? Do you know about it’s next project ? Are you confident about the future plan of the company ? Are the company Debt free ? Do you have confident about yearly return of the share ? Do you have any idea about risk /reward ratio of the investment ?
If the answer is satisfactory for you only then you can by that stock in low quantity. Wait for the down for accumulate more and sit back till it accrued profit. After getting 20 to 25% profit book at least 25 to 30% of the investment amount, that can be reinvest in other stock or same stock if it goes down again.
Equity market is highly volatile. For that reason if you not book your profit it can disappoint you. Investment and reinvestment properly can boost your return in long term. If you are experienced enough then you could manage your portfolio your own. if not then don’t forget to avail an expert opinion for your investment.
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