Important Factors to be Considered While Investing in Equity. After Providing India’s Top 10 Safe Investment Plans. In this article you can find all important factors for investing in equity like – Research about the company, Basic trading mechanism, Assess your performance based on your mistakes, Diversify your investment etc. Now you can scroll down below and check complete details regarding Important factors to be considered while investing in equity.
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Important factors to be considered while investing in equity
With a change in political scenario along with revolutionary developments and expansions in many sectors… never before things are happening in equity markets in India.
While making your investment in equity you have to consider many things that affect your money in the future…. here I’m discussing a few things about those points to be considered..
1.Research about the company :
While searching for a company where your investment will be safe , you have to Research about the company, the sector, the competition, the stock market as a whole, the government policies and prospects with regard to the sector, historic prices, highs and lows of the scrip , the future plans proposed by the company ,trends in the growth history of the company.
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2.Basic trading mechanism :
Depending wholely on stock brokers is a better thing for those who don’t have much knowledge about stock market…. After getting some experience with the market you should gain some basic trading mechanism like how an order is placed and how the settlement happens, how the markets function. Both the National Stock Exchange and the Bombay Stock Exchange are offering basic and advanced courses in trading. And by attending many workshops that are conducted by SEBI one can enrich their knowledge about equity trading.
3.Assess your performance based on your mistakes :
Instead of focusing only on future one should also learn from the mistakes committed in past and should take Care so that it will never be repeated. In equity markets occurrence of losses is inevitable… It’s in your hands to reduce the losses possibility by constantly changing your portfolio if you are a short term oriented investor. If you want to hold for long term then in such cases you have to carefully analyze about the scrips in which you want to make your investment.
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4.Diversify your investment :
Don’t keep all your eggs in one basket. If you keep all of them in one basket , you may lose all when something adverse happens to your basket. So diversify your investment…. For example you can invest some amount in automobile industry , some in service sector and the rest in banking etc….This would equally balance your losses and gains.
5.Gain knowledge about corporate affairs and the proposals of many industrial giants and new IPO s:
Reading a business daily regularly will not only improve your knowledge but also your forecasting skills be enriched. Following the business news regularly in media like CNBC will add something to your brain about market functions.a number of different apps allow you to track your investments, provide news flashes with respect to your portfolio. These apps also help you to monitor sectoral changes and allow you to stay in touch with other investors of a particular stock.
6. Don’t ignore experts opinion :
Considering the advice of auditors you have to plan your investment accordingly ……I don’t say that depend on experts for whole and sole …..but I can say that expert’s expertise can be useful in the initial days of trading.’
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