I want to start my career at stock market. So I have been going a broker house regularly since 3 months. I can realize that some people are earning a handsome profit regularly by selling & buying share. They are only buying and selling 2~3 listed share. I keenly observe that Every day they sell a share in a particular time & buy a particular time but they never loss. I can’t understand their art. But I want to do this business. Please guide me how to do share business like those men.
Omar, whoever gave you the idea that people who buy and sell ("Trade") never lose is grossly misleading you. EVERYONE has losses at some point.
The key is your capital reserves. Using the same equal dollar amounts, one generally needs a 66% success rate (2 out of 3 trades positive – in equal amounts relative to the loss) to do well long term in the markets. This is not easy.
I would encourage you to review my post history. I have displayed my views based on 20 years of market knowledge and professional experience. I did this to try and help people over the last 2 years to manage the financial and economic issues I saw coming way back back in spring 2004.
Also read my post published last year.
http://answers.yahoo.com/question/index?qid=20080115160036AATMDIw&r=w&show_comments=true&pa=FZB6NWHjDG3N56z6v_2wWvuWRO9vC5UBVny9J4X65p.MAAJixvQpKQ–&paid=add_comment#openions
Good Luck!
If you are long term investor with a horizon of 2-3 years, then it is definitely a good time to enter into the market
Investment over a longer period of time is always fruitful and facts supplement it. Sensex has come along all the way from 100 to 15,000. If you had invested 10,000 rs in infosys ipo in early nineties, you are crorepathi by now.
Follow the simple steps while making/tracking your investment.
1. Don’t Waste time
The earlier you make investments, the better are your returns. The compounding rate of return increases with the number of years you are invested. Eg. 10,000 invested for 3 years at 15% return is worth 15000 whereas the same sum invested for 10 years at 15% return is worth 40,000. So do not time the markets to buy at lower levels. It is very difficult to find the bottom of the market.
2. When do you need money?
Decide on when you need the money down the line. For anything less than 5 years, do not go for stocks or equity mutual funds. Equity should be considered only for a longer period of greater than 5 years. For short to medium term investment , go for debt instruments
3. When to sell?
After you had made your investment, you should decide on when to cash out to meet your financial goals. There are two scenarios where in you can redeem your investments.
1. When your financial goals are met.
2. When the investment in stocks/mutual funds become overvalued.
4. Don listen to rumours
Do not redeem your investment going by the rumours in television and stock market of a correction or a crash. Take your decision on your own.
5. Consistent Review
The job is not done just by investing. One should always keep monitoring his/her investments in a regular basis and should take a decision based on the review.Do not churn the portfolio too often.
Know more on stocks updates,sensex at
http://www.paisawaisa.com/stocks/
Perhaps your observation wasn’t keen enough. Everybody who trades stocks looses money on some of his trades. It’s just that they make more money than they loose. And that’s why they are able to stay in business.
It takes a lot of practice and experience to learn how to trade stocks well. And it’s not something anybody can teach you in a few easy minutes. For some people it takes years to learn. And others never learn how to make much money this way, even after they do it for many years.
Trading well is an art and not a science. And not everyone can be a good trading artist.
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