Saturday, July 10, 2010

Indian Share market tips

In this article i will narrate some tips to gain more in share market.

Observation is one of the most things that you must do before investing. You must observe certain share that you decided to buy. After close observation for 1 week you can see the least price which a share gone and also the high price which that share gone. For example, I am going to invest money in INFOSYS Company. When i decided to buy its price is 2500. I closely observe it for 1 or 2 week. In these days i can see this company's price going down and going up. Suppose its price had gone 2400 in the days i am observing and it had gone 2600 respectively. I could assume that it will again go to such a least price and wait for that opportunity to buy. Before you buying the share of that company you should check the fundamentals of the company.

Don't be panic or don't be so joy when share market down or became bullish. This is the major thing that you must keep in mind before starting this business. If you invest correctly you can earn money if invest is wrong you will lose your money. Before starting this business you must search more information about this from any resources or you can get a stock broker. If you have a television watch CNBCTV18 in this channel there will be much news about the companies and about the stocks.

Before investing you must assume a price of the company and when the share reaches that price you must sell the share of that company. For example if you buy UNITECH share for RS. 70 you must put a price that is 76 or 79 or any other price that you like and if the share reaches that price you must sell it. It is for avoiding sadness when you sell the share at 76 rupees and after that the sometimes the share will go above 80 this time you will think that your selling was a foolish decision and also become dumb by remembering it. So to avoid that this trick will work. In this you will get the profit you decided and if the share gone above your selling price don't be sad because share market is like that we can't expect more from it there are many opportunities in share market. Invest your money when the market is in a low position and don't wait for the high profit if you get the profit that is enough for you don't waste time sell it. At that time you can sell it in a profit. If you wait for more and more sometimes the company will came to lose and all your money will lost.

There are two types of trading short term trading and long term trading. For a new person who is entering in to share market long term is good. Short term is very risky but we can make more money on short term trading. For that you must observe the share market very close and must study all techniques of the share market. For short term trading chart is very helpful. Chart means chart of the price of the companies. This will help to know the high price of the company and low price of the company. For long term you must look the situation of the companies and also fundamentals of the companies. When doing short term investment don't use a large amount of money. Because there is a huge chance to reduce the money. I suggest long term investment than short term investing because in long term investing is much secured than short term in all ways.

So friend i hope you enjoyed this article and please don't forget to comment if you like it or not say your opinion about this.

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