Loading


How to make money in stock market
No. of Views :18350


Stock market



Humans tend to imitate each other. Hearing some success stories, many people tend to indulge in buying stocks with the hope of reaping huge returns. However, it should be noted that only a small number of people make money in stock markets. Majority of people lose money there.


Most of people simply tend to follow trends of the market and end up losing money. It is important to have a clear strategy with regard to investment in the stock market.  



Study the company



Before putting your hard-earned money in a stock of a company make sure to understand the company properly. Study about its past, management team and the industry. Also try to understand the future of the company. Some companies may be giving high returns in the present but they may not have a good future. It is not wise to put money in a company that has already reached its peak. Instead invest in a company that has a great future even if it is small in the present time. The management team of a company is very important as all decisions are taken and implemented by the company management only.  



Invest do not trade



It is advisable to invest money in the stock market. However, make sure to not indulge in intense trading of shares. It is seen that in a long run those indulging in intense trading end up making not much money. The wise thing is to put a significant amount of money in a company that has a promising future and then wait for couple of years. Many people indulge in intense intra-day trading feeling that they are soon going to become rich. However the market has its own nature and it tends to reward people with patience.   



Do not follow crowd



It is important to follow your own your instincts instead of following trends of the stock market. Majority of people simply tend to follow the herd ending up with not much amount of money. Being a herd has no rewards. Usually it is the opposite. If all people seem to be buying stock of one company then it is advisable to avoid the stock. On the other hand if there is a panic in the market and people tend to avoid a share then it may be a good opportunity to buy that.



Especially look for the opportunities when shares of a good company are down due to some sudden bad news about the company. If the fundamentals of the company are fine then it is a great idea to invest at that moment and reap benefits. One good example is of Indian IT company Satyam. Due to a recent scandal about its bookkeeping practices the company stock went down to the level of Rs. 10 when normally it was around Rs. 100.  People were selling stock of the company fearing a total collapse. Soon after the government intervention the stocks of the company went up to the previous level of Rs. 100 within a month. So, anyone who went against the crowd must have made 10 times returns on the stocks within a month. To put it simply, follow your heart and instincts, not the crowd.  



Disregard experts



Due to the growth of the media, there are several business TV stations that have so-called experts giving advice to the masses about what company to invest in. Sitting in your home you may feel that he is giving advice to only you. However, the same piece of information I being shared with millions of people sitting alone in their rooms. So, take their advice with a pinch of salt. Most of the times when they advice about a company share, the company shares have already touched a high. So, avoid them. You should pick stocks of those companies that have not peaked in the market, and have a great future as they are growing.      



Have patience



It is important to have patience while investing in the stock market. Frequent trading may not yield you desired results. It is seen in practical world that most of the people who make significant amount of money in stock market do it by investing in a promising stock and leave it there for couple of years. On the other hands those indulging in frequent intra-day trading, even for a long period, end up with not much money. Patience is certainly a virtue here. 


Posted on: August 22, 2011, 8:10 pm







GET INSTANT LOAN, INSURANCE AND CREDIT CARDS
Just enter few details below! It is safe. See details
Name *
Mobile*
Email
Country*
City
Select*
Monthly Income
Comments

Security Code*


Services from leading banks

Bank logos




Share

Convixer on Twitter




Popular Guide posts
How to create wealth

How to create wealth

Everyone wants to become rich or at least have enough money to live a comfortable life....

Causes of poverty in India

Causes of poverty in India

India has a large number of poor people. According to estimates, around 80% people of t...

How to find best general insurance deals

How to find best general insurance deals

All your belongings that have a monetary value can be covered under general insurance p...

Thinks to take care while applying for a home loan

Thinks to take care while applying for a home loan

House Loan or home loan is much more complex than it appears. If you have already decid...

How to make money in stock market

How to make money in stock market

Humans tend to imitate each other. Hearing some success stories, many people tend...

Things to consider before buying a car insurance

Things to consider before buying a car insurance

A car insurance may cost you a lot without fulfilling all your requirements. Choosing a...

How to find best saving rates

How to find best saving rates

To determine the best financial institution to find the best savings rate is often a di...

Why you should buy a car insurance?

Why you should buy a car insurance?

Car insurance is an insurance against any damage or casualty caused by a car accident....

How to find best saving account rates

How to find best saving account rates

No matter how you have been dealing with your current bank or how to find the best poss...

Why go for Health Insurance for Individuals

Why go for Health Insurance for Individuals

In the current situation, when the whole world is facing the the negative effects of th...