When you’re ready to enter the financial markets, you’ve got to put your money where your mouth is to make a profit.
Let your money do the talking in the Market
There are many myths attached to the theory while some look at it as the means of growing wealth and start taking unlimited risks while others still novice about the Idea are safe players and don’t allow their money to work for them. The basic idea is a interdependence on one another as for the company to grow they need capital and once u put in your money to help the company grow you owe stocks or shares of the company. As the company grows not necessarily that the values of the stocks also grow. So it’s a give and take relationship where the company gets the capital while you are a shareholder in the company.
Now once you have become the shareholder, you need to wait for the right time to sell your shares to make some money which is guided by the investor’s emotions. There being 2 kinds of market trends bearish and bullish trend. When the market gives out positive signals about the economy its bullish trend and the investors buy the stocks based on the future pricing predictions whereas it’s a complete opposite in case of the bearish trend and there’s a fear in the market.
Some investors are risk taking while others are more stable and play safe. Apart from understanding the market trend it’s very important to develop one’s personal trading acumen by constantly gearing up one’s knowledge about the market through the news and the studying the newsletters of the company in which one has invested their money.
By understanding the company’s share price position one can plot the position of the company in the market and by analyzing the increase and decrease in the share price one can predict the price of the company’s share in the near future and can strategize the move accordingly.
Just the Basic fundamentals of playing with the stocks and the market
1. Understanding the basic concepts of stocks to know which stocks to buy and why?
2. Evaluating the time limit for which the stocks need to be held before making money
3. Understanding the market trend and the emotions of the investor before selling the stocks at the right time.
4. Constant up gradation of knowledge on the market trend and the performance of the company.