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January 1, 2009

Is Stock Market for me?

Filed under: Stocks — Tags: , , , , , , , , — admin @ 1:31 pm

Investing in Shares or trading in Shares is one of the lucrative ways of earning money in a short period of time. In the same time, Investments in Stock Markets is risky and may lead you towards losses. Before entering into the world of Stock Markets, a person needs to gain a decent amount of knowledge about Share Market.

Apart from gaining knowledge about the basics of share trading, one needs to have enough money and patience to make profits. Share trading is the process of buying shares and selling it in a short period of time. In contrary, Share Investments refers to the process of buying shares and holding it on for a longer period like 1 year or above. Choosing the Share Trading or Share Investments is a personal choice of the Investor.
Market Sentiments

An Individual should understand that the activities of Stock Markets are prominently driven by the sentiments of Investors. If the sentiments are negative it would have a negative impact on the Stock prices and incase the sentiments are positive the stock prices would surge.

Stock Specific News

At times, the price of Stocks may be influenced due to stock specific news irrespective of the overall market condition. If there is a positive news, the specific stock would increase in value even if the overall Market is moving in a downward direction.

Global Cues

US Stock Markets (Dow Jones and Nasdaq) are considered the mother of all Stock Markets. The results of these Stock Markets have a great impact on other countries’ Stock Markets. Typically the price of stocks raises or falls depending on the global cues.

Demat Account

In today’s electronic world, opening a Demat Account has become a must for Stock Investors. A demat account is useful to buy or sell shares over the Internet and eliminate the need for physical share certificates. Market regulators in many countries have framed rules in favorable of the electronic delivery of Shares.

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