Think Before Act..
Mainly there are two types of participants in share market - Investor and Trader
Investor?
A person who invests his/her money in company’s performance to get good returns during long term is called as Investor.
Investor buy shares of the company that he feel is having good business and fundamental and in next couple of years the share price of the company would go up and provide good returns.
Some Facts
i) Investing doesn’t require you to track market throughout the day. At the same time it is always advantageous to keep self updated with market happenings.
ii) Investing can be done from 6 months to couple of years like 5 years, 10 years, 15 years and even for 20 years.
iii) Please note that “Our Indian History” shows that investing in share market for long years have always provided excellent returns compared to any other investment option. So people knowing this fact stay invested in share market for long term and get benefited.
No any other investing method provides returns that can be matched with share market returns during longer period.
Trading?
The mean of trading is buying and selling and share trading means buying and selling of shares.
Who is the trader?
Trader who does buying and selling of shares is called as share trader.
ii) Trader do buying and selling of shares without concern of company’s performance rather they do technical analysis and opportunity finder.
iii) Trader is not interested to know how well the company is doing.
iv) Trader’s are basically opportunity finder - Opportunity can be of any good news or bad news or any government declaration or any company’s announcement, any opportunity that makes the movement in the share price interests traders and they take respective positions in that particular share.
v) Traders keep themselves updated all the time and hence the trading has considered as full time business/job.
vi) Trader do very frequent buying and selling of shares on daily basis, weekly basis and on monthly basis.
Trading involves very high risk and it can wipe out all the money/capital.
So basically I advice, to first learn or do only long term investment before doing short term trading
Investing V/S Trading?
Mainly there are two types of participants in share market - Investor and Trader
Investor?
A person who invests his/her money in company’s performance to get good returns during long term is called as Investor.
Investor buy shares of the company that he feel is having good business and fundamental and in next couple of years the share price of the company would go up and provide good returns.
Some Facts
i) Investing doesn’t require you to track market throughout the day. At the same time it is always advantageous to keep self updated with market happenings.
ii) Investing can be done from 6 months to couple of years like 5 years, 10 years, 15 years and even for 20 years.
iii) Please note that “Our Indian History” shows that investing in share market for long years have always provided excellent returns compared to any other investment option. So people knowing this fact stay invested in share market for long term and get benefited.
No any other investing method provides returns that can be matched with share market returns during longer period.
Trading?
The mean of trading is buying and selling and share trading means buying and selling of shares.
Who is the trader?
Trader who does buying and selling of shares is called as share trader.
ii) Trader do buying and selling of shares without concern of company’s performance rather they do technical analysis and opportunity finder.
iii) Trader is not interested to know how well the company is doing.
iv) Trader’s are basically opportunity finder - Opportunity can be of any good news or bad news or any government declaration or any company’s announcement, any opportunity that makes the movement in the share price interests traders and they take respective positions in that particular share.
v) Traders keep themselves updated all the time and hence the trading has considered as full time business/job.
vi) Trader do very frequent buying and selling of shares on daily basis, weekly basis and on monthly basis.
Trading involves very high risk and it can wipe out all the money/capital.
So basically I advice, to first learn or do only long term investment before doing short term trading
Precaution for trading -
Trading requires lots of market knowledge and experience so I do not recommend trading for new comers.
Trading requires lots of market knowledge and experience so I do not recommend trading for new comers.
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