Friday, October 29, 2010

How to make safe money in share market ?


Share Market is one of the attractive places for an individual who wants to create wealth in a short period. It is quite risky and adventurous place to grow money fast. One needs proper knowledge and guidance from the expert of the market before investing in it. There are thousands of stock and it is not possible to invest in each and every companies' stock. So before Investing in stock market some point need to be considered-
  • Analyze the fundamental strength of an investing Stock:-
Strong fundamental company indicates rapid future growth. Whether it performs well today or not, but one who invests in such stock with long horizon can get good profits in future. To analyze fundamental strength you need to follow the Balance sheet of the company which you can easily get in daily newspapers which is published on quarterly basis.
  • Follow the concrete Information :-
Rumor always airs in the markets. No need to follow the rumors before you are confirmed from the companies' management end .After you have got the proper news regarding the company benefits then plan to invest in that stock. Positive information regarding the company boosts the stock in market as well. It helps you more if you hold with long period because such positive news help your money to grow faster.
  • Try to minimize or avoid the Intra day:-
Intra day is quite risky compared to delivery of any stock. In intra day one can't minimize the risk and there are chances of being in huge loss. So, before go for intra day you should follow the sure shot tips from the market with reason why it moves upward or downward. Before playing as Intra day you must stop loss to minimize loss if unfortunately they occur.
  • Try to focus on IPO :-
Initial public offer ( IPO) plays a vital role to create wealth in short period. One should try to focus on best IPOs and research on it before investing.80-70%. IPOs initially boost the market and move upward from its issuing price .Try to book your partial profit when the stocks are in profit. In a time when opportunities and benefits are knocking at the door,you must realize that its time to detach yourself from the stock
  • Know your risk taking limit:-
As investing in stock market is risky, one should invest that part of his saving which is not required in the next 1 and 2 years. At the time of emergency he or she can arrange to avoid the uncertainties without redeem of his stock. First you analyze your own risk taking ability and then after that try investing in installment as per stock movement. Keep averaging at certain level when you are in loss to minimize the loss amount.

Above all let yourself know that don't always depend on broker advice and tips. Your own decision and instinct research helps you to make wealth in short period. Up to date marketing knowledge helps you to analyze and take a better decision. So, always keep elf aware of the marketing updates.