Investing in share market is like fighting your enemy in war field. Soldiers safeguard themselves before attacking. Similarly securing your money is very important in investments.A generation in share market has now shrunk to 3 years. If you are investing for a longer term like 5 – 7 years.
Those who want to stay invested in their stocks for a longer period are known as investors. Those who buy stocks and sell them in short span are known as traders. Investors should not have the mind set of traders and traders should never turn into investors just because of situation.
Cheating investors and gaining profit can be advantageous for the companies but they should realize how it affects the stock market and the economy of the country. SEBI’s guidelines should be strictly followed by all class of people including Promoters, Investment Bankers, High Network Individuals and the Retail Investors.
Though the stock value has not appreciated considerably, many companies have given decent dividends for their investors. On investing in stocks that provide consistent dividends, there are two benefits. First one being the profit from the stock value appreciation. Secondly, there is tax-free dividend.
When a company reduces the face value of the stock thereby increasing the total number of shares of the company is known as stock split.Many companies go for stock splits when the stock is trading at a very high value which makes it difficult for the retail investors to invest in their company.
Greed, fear and panic are some of the negative emotions that traders fall prey to. Greed causes traders to take positions without understanding the risk-reward ratio. Fear and panic leads to traders liquidating their positions when stop loss is not hit or when there is a huge downtrend in the market.