Stock Market Investing - Must Read For All Stock Market Investors
You may think why didn't I invest in those companies.
But the question is how do i know when to invest and in which company should I invest.
In addition, how long should I hold the stock or when should I sell the shares? This is the most difficult question to answer by anyone.
You ask any expert in the field of stock market, they will mention "according to me" "based on my analysis", I feel the stock is a good investment.
Ultimately it means, the experts predict the future movement in stock prices but it may not be 100% accurate The reason is stock market runs on probability.
Based on information & analysis, future share prices are predicted but the probability of the share prices reaching the target price is always a 50:50 chance.
As there are many factors which affects the share prices of a company and this price target is predicted based on certain assumptions, if the assumptions becomes incorrect, the chances of the share reaching the target price decreases.
Considering the probability involved in a stock market, you should be careful before you park your money with any company.
Do not invest because your friend/colleague is purchasing it.
Don't invest because many TV Channels and newspapers are talking about the stock.
You must have a clear idea of the shares(stock) you want to purchase.
Pick a stock based on your investment objective, risk appetite and the fundamental parameters of the share (stock).
Additional points to note is the liquidity of the stock ( Volumes of shares traded on a daily basis) and the volatility of the share ( the difference between the highest price and lowest price for the day).
But the question is how do i know when to invest and in which company should I invest.
In addition, how long should I hold the stock or when should I sell the shares? This is the most difficult question to answer by anyone.
You ask any expert in the field of stock market, they will mention "according to me" "based on my analysis", I feel the stock is a good investment.
Ultimately it means, the experts predict the future movement in stock prices but it may not be 100% accurate The reason is stock market runs on probability.
Based on information & analysis, future share prices are predicted but the probability of the share prices reaching the target price is always a 50:50 chance.
As there are many factors which affects the share prices of a company and this price target is predicted based on certain assumptions, if the assumptions becomes incorrect, the chances of the share reaching the target price decreases.
Considering the probability involved in a stock market, you should be careful before you park your money with any company.
Do not invest because your friend/colleague is purchasing it.
Don't invest because many TV Channels and newspapers are talking about the stock.
You must have a clear idea of the shares(stock) you want to purchase.
Pick a stock based on your investment objective, risk appetite and the fundamental parameters of the share (stock).
Additional points to note is the liquidity of the stock ( Volumes of shares traded on a daily basis) and the volatility of the share ( the difference between the highest price and lowest price for the day).