Benefit on Trading Sector

In the run-up to the Corona epidemic, we have seen the stock markets of almost all the countries of the world come down abruptly including Indian BSE & NSE. Many investors were afraid to watch their investment boats and picked them up with some losses. But in the next two months, the market reached much higher than before and those who left the market at that time, they have to count great losses. Starting an investment business is much easier than earlier. Nowadays many people like housewives, employees, students, and even retired persons are benefiting by investing in the field which was only under the control of Rich Institutions.

But before you set your foot in such a wonderful world that is so exciting and potentially financially lucrative, you need to make the right decision about what kind of investor you want to be? I have seen some of the invertors haven’t given the proper answer to the above question, facing there is a risk of anxiety.

Think about it for a second. Have you really thought about what you should do to start creating wealth for yourself and your family? If not, what kind of investment method would be best for your position?

Let’s focus on different types of investors...

Fundamental people, who just buy and hold shares, and value them as long-time wealth, they hold them for 1 to 50 years. This type of investment makes people think of longevity, they don’t look for short-term gain. Fundamental people always invest in good companies and before investing search the status and liabilities of the company, future planning, management, market value, and business potentiality. The most famous proponent of this kind of approach is Warren Buffett, the second richest man in the world, so you can say that it is not such a bad style or strategy.

Day trading:  It is the complete opposite of the buy and holds method, usually investor invest for a very short period of time cannot hold it for long, the maximum holding time is 1(one) day. If you have plenty of time and capable to research market strategy then this type of trading is suitable for you.

There are two types of people in the stock market they used to justify market strategy in two ways, one goes on the fundamental way and the other goes on technical analyses. In order to be profitable in the investment business, it is always wise for you to analyze in both ways.

As earlier discussed fundamentalists always justify the following strategy before investing in Shares, always verifies the company's profits, management direction, future plans/growth prospects, the overall economy, and the organization and economic factors.

Nowadays there is a background of mathematical or scientific analysis in the stock market, you can analyze the stock price charts by throwing in various technical analysis techniques, ratios, indicators, and trends to determine which stock will do well in the future.

It would not be wise to rely on just one or two analyzes before you invest. For example, a chart that contains all the indications that a stock can make a very good profit in the future unless the company goes bankrupt for some reason. As I mentioned earlier it would be wise for you to consider the basic and technical analysis before investing.

Before investing you need to think about what kind of investor you want to be and how much risk you are able to bear in the investment market. In other words how much loss you can bear. This will affect your future investment style, depending on what type of stock you choose to buy and sell, which will reflect how much return you are getting in the near future.

Investors come to the investment market with different methods; there is no way to tell which of these methods is right or wrong. Different things work differently for different people. The most important thing in the investment market is to choose which method will be most suitable and reliable for you and which will work right for you.

In the first phase, you need to start with a little risk, because there is no alternative way to fulfill your future plans or dreams other than investing. Thanking you for reading this blog, wishing you Good Luck.

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