Stock Market ideas.

Everyone enters stock market with an idea of making profit.  But how many are making it.  Only quite a few lucky people make it.  Many have burned their fingers and lost their fortune by investing in stock market.  It may be because they entered an area without proper strategy and their emotions overtook their decisions.  The important key to success is that one should stick on to ones own strategy and should not deviate from the path even when they make initial losses.

Shares, as everyone knows is the riskiest form of investment.  Shareholders are the owners of the company and in case of making loss or liquidation they stand to lose.  So while investing in shares, one should consider the track record of promoters, the dividend paying history, its book value, price equity ratio and the balance sheet of the company for the preceding years.  Without studying any of these if anyone purchases the scrip based on its performance in the market and rumors, there is every chance, that the purchaser may make loses.  All who enter the market knows the above-described rules. But with sudden spurt of emotions one forgets all these and enters into a contract.  Playing with emotion is gambling and not an investment method at all. One should clearly understand his niche before starting. Whether he is aiming at short term or long-term investment. A day trader’s strategy cannot be applied to a long-term investor.