Stock Market Investment and Nuances


Does going by share prices ensure yields? It is a definitive ‘No’. But most traders do follow this dictum only to face regular losses reaping gains by chance if fortunate enough. Given the volatility of the share markets related to NSE share and BSE share in India, it is advisable that you take a look at the earning capacity of the particular company you are investing rather than the share prices. If you go by prices, you may not be able to asses the performance of the company selling the shares.

To be on the safer side so as to maintain a balance of loss and profit in the stockmarket, spread your risks across a set of market segments, buying both NSE share and BSE share for both long term and short term. Not all shares that you buy may bring you yields. If, for some particular stocks, you are looking for the right time to sell them, and these turn out to be fiascos, sell them immediately. Do not be driven by the notion that the prices of these shares would go up after some time. Only very few stocks rise again after a fall. Stick to those NSE share or BSE share that is growing continually. read more Go by the value of the share, not by the momentum.

What most wise investors do is buying stocks of blue chip companies, especially those that have maintained a track record of continuous growth. This ensures that risk involved is less. Buying into large company stocks is always prudent as the chances of earning profits in the long run are higher as compared to other stocks. Do not go for stocks that are hard to evaluate.

There are lakhs of investors in the Indian stockmarket and to cater to them are share brokers. If you open a trading account, you do need the services of share brokers to take care of the complete transaction process. They get the license to carry out their broking activities; the SEBI is the key regulating body in India to monitor the functioning of the stockmarket in India. Share brokers charge fee from their clients, i.e. the investors based on the shares dealt in or as mutually decided. Common investors are not authorized to handle the transaction. There are share brokers who have different roles to play depending on the investors’ preferences. It may be for partial guidance only or proper guidance or themselves getting engaged in buying and selling on behalf of investors. You can find reliable and experienced share brokers at an online trading platform.

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