The newbie’s guide to Indian stock market and its trading mechanism
The Indian stock market is a vast ocean of complex jargons and trade literature that can feel anyone feel at a loss on the first day. Unfortunately, without the knowledge of these jargons and terms it is literally impossible to carry out trading transactions. Even if you manage to execute transactions without knowing more about stock market terms the possibility of incurring losses will be quite high. However, with little effort one a rummage through these transactions and soon become a successive trader who can turn any humble investment into manifold yield. Knowing the trading mechanism of the stock market is the first step towards becoming an investor. It is wise not to put in your money and then learn about how to manage your investments since the losses arising due to ignorance can be quite high.
One of the biggest that new investors make is to invest money in big tickets with hope of earning big returns within short period of time. One thing that every investor needs to understand is that every business holds equal if not more risk in their trading. Each industry and business has its own share of pros and cons which will have a direct result on their trading profits. It is always better to buy stocks of such companies that have a strong business ethic and financial background than those that the herd follows all year long. A well detailed guide to Indian stock market will also help you learn the nuts and bolts of selecting the right stocks.
The stock market is not the right place to lose yourself in pee pressure. Learn to accept with grace the different opinions but stay on your own and make trading decisions that appeal to your logic and business sense. Who knows, perhaps you may be able to get a better return on your investments than the stocks suggested by your peers are worthwhile for investing.
The share market is not a time machine that works with clockwork precision. It is a speculative business based on random financial happenings from all over the world. You can never draw a stable pattern of the stock market trend except a rough outline which again can only be as vague as it possibly can be. There are no seasons or boom periods in the stock market. It is purely based on the market forces of time and demand. Hence, learn to master the art of speculation which has great scope in Indian stock market trading.
Know what Warren buffet says about investing? Follow discipline. The multi-billionaire is known to spread the gospel of discipline wherever he goes which he claims to be the sole reason for his success in the investment business. Discipline refers to standard processes of selecting stocks, making careful evaluations and going by logic when your mind pulls at making decisions based on impulse. A disciplined approach to stock trading is taught as the first lesson in any guide to Indian stock market.