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How Returns are Generated in Stock market

Earning is the main aim of every investor there are many investment options that are available and the share market is one of them. The stock market is risky but if invested correctly, one can acquire good profits from it. To make this investment-worthy you need to have the patience, skills, and knowledge of how this market works. Anyone who trades in the share market wants to know how the capital they have invested grows. The value of a share is usually determined by the capital appreciation which is is the rise in the value of a stock based on the market price this capital appreciation occurs when the original capital invested in the stock has increased value.

Dividends also play an important role in increasing the value of the stock because these are the returns paid by the corporation to its stockholders. These dividends are given in two forms either cash or stock dividend which represent earning per share or stock. Selling of stocks can be done any time any individual can earn dividend annually semi-annually or quarterly. Making Money is not difficult if you have the necessary knowledge and skills here are some essential recommendations to earn a return on investment First, one is buying and holding technique which involves you buying stocks and holding them to sell them when the market value increases. With the use of this strategy will give you better returns from investment.

Then the second technique is the market timing process that involves predicting the market and how the stocks will trade in the future. Buying low and selling high is another strategy that you may use to increase your money.

Patience is very important in this market because it takes time to earn profit in the market and loss is the another  important factor of this market which only occurs due to an urge of earning more and more money quickly people think of this market as a pot full of gold which never empties this is true but only when there is patience. 

Timing is yet another factor in this market cause correct investment decisions made at the correct time can result in earning profit and if taken in a hurry can cause loss so timing is important according to experts perfect time to buy or sell a stock is during recessions because its value is down during this time and hence you can buy the stock at this time and wait for its price to grow and another best time to buy a share are when company releases its shares because companies release its share at a lower price usually.

So these are some recommendations to earn more and increase your capital in the stock market.







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Thursday, 27 June 2019

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