What is share?
The capital of a company divided into different parts called shares. Each part of share capital is called a share. Or the share is a part of a larger amount which is divided among a number of people, or to which a number of people contribute.
Investments need you to understand fundamental analysis. It’s when a company starts becoming fundamentally stronger that you start earning good money. Investments need time for analysis of balance sheets, ratios, knowing about promoters etc. It’s good if you are particularly engaged in some other profession and don’t have much time for trading.
How investing works?
The basic is simple, companies who want to raise additional interest free funds for expansion and growth, seek out for help and the public is offered some ownership in the name of shares. The company gets money while public gets ownership of shares to the extent of their holdings.
Why people are afraid to invest in the share market?
- Fear of failure
- Fear of being cheated
- Fear of losing money
- Lack of Knowledge and Experience
- Lack of money to invest
- Lack of trust in stock brokers or advisers
- The stock market is too risky
- Volatility
- Bad Experience
How to trade in stock market?
- Make a Plan and Follow it
- Create a Risk Management System and Preserve your capital
- Keep Trading (Price) and Investing (Value) separate
- Manage your Emotions and Expectations
- Don’t listen too much to forecasters, advisers or brokers. They only fill your ears, not wallet.
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| image sourse: Flickr |
You don't have to be Warren Buffet but follow his strategy. He always follows two rules: “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1”. According to him you shouldn’t invest in a business which you cannot understand. It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction. In the world of business, the people who are most successful are those who are doing what they love. So invest in those company in which you believe most.
...Thank You...
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