Question:

Tell me truth about share market?

by  |  earlier

0 LIKES UnLike

hi friends i am trading online in indian share market since two years but no success.i have lost a lot of money in trading when i look around i found a lot of people around me having same condition. i tried long term shorterm future everything but nothing.plz tell me the truth about share market.is there anyone who has make money.what is your experience kindly advice me

 Tags:

   Report

3 ANSWERS


  1. Like anything you have to know as much as you can about the stock or whatever. Otherwise you might as well stick a pin in. It is said that the "small" investor invariably gets it wrong, so do the opposite of what you tink is right! I would suggest you concentrate on one type of instrument and narrow that down to one part of it, say a sector in shares ; concentrate on one or two stocks and learn aboit them thououghly


  2. When you gamble you usually lose. You are gambling. I bet you are not following any of these rules:

    1. Do not chase past returns. People that buy funds because they have done well in the past are doing exactly that.

    2. Do not market time. Market timing is buying based on your (or your newsletter, or your TV, or neighbor's) guess about what is going to happen in the future. Even if someone knows something, you've already missed the boat. The price already reflects what you just found out.

    3. Use index funds. Over time, index funds outperform actively managed funds, mostly because they do not have those high expense ratios. Some actively managed funds do beat their index, but the ones that do usually do not do so consistently. So why gamble? Use index funds. If you want to use a few actively managed funds, make sure that the costs are very low. Vanguard has some good ones.

    5. Diversify. Don't put all your eggs in one basket. Own a mix of bonds, domestic equities (large, small and mid cap funds), an international fund and perhaps a REIT (Real Estate Investment Trust) and emerging market fund.  Four to six funds is all you need. Know your risk tolerance and set up an appropriate asset allocation. Rebalance as needed.  

    6. Consider taxes. Use the least tax efficient funds in your tax-deferred accounts and the most tax efficient funds in your taxable accounts.

    Learn how to INVEST, not gamble.

  3. You are speculating(gambling) not investing. Before you invest you need to study about that company that u need to invest. I recommend you to read The Intelligent Investor and Security Analysis by Benjamin Graham(Warren Buffet mentor), and Peter Lynch's books before you invest.

Question Stats

Latest activity: earlier.
This question has 3 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.