The bulls and the bears all appear to be geared up to astound the market to its own
whims & fancies. When we come across the bizarre market, we can t help but think of
Snow White s magic mirror to ask Mirror, mirror on the wall, when will the Sensex fall?
While there is barely any way to know what tomorrow might bring forth, there seems to
be a clear consensus on the million-dollar question -- where are the markets headed? If
you take the benchmark Sensex outlook as an indicator - the outlook is bullish.
Does anyone really need to invest in stocks in this market mayhem?
Stocks are a must for any serious investor. Stock markets have always been a draw for
investors for their ability to generate wealth over the long-term. Many have been at it, but
few can claim to have mastered the art of investing in stocks. In most cases, investors
have just not been able to appreciate the higher risks associated with stocks. Fear,
greed and a short-term investment approach act as hurdles that frustrate the investor
from achieving his/her investment goals.
In stocks, you can make unbelievable money. They add that extra dynamism to your
collection of investments. It's not uncommon for people to have doubled their money inthe last one year. On the flip side, when the markets crashed in May, many people lostmore than a quarter of their investment. No doubt the risk is higher with shares. But ifyou are in for the long haul, so are the potential returns.
But before you plunge and invest in the stock market, get your basics right -
Get educated: Read about stocks and the market.
Develop financial goals: Build investing and stock selecting strategies
Research individual stocks: Read annual & quarterly reports. Have a glance at the financial statements
Invest in what you know: Consider stocks of companies that you are familiar with & on
those you have confidence on performance
Diversify: Never place all eggs in one basket
Appetite for risk: Stock market can be a roller coaster ride, hence assess your appetite for risk before investing Study the Price.
earnings ratio: Check the norms of the company in relation to the industry to which it belongs
Never think that by investing all your money today, you will be a millionaire next month.
Invest for the long term.
Stock market is no rocket science, needs no breaking of any Da Vinci Code to interpret it. Hold on the rudiments & the ground rules during your rendezvous with the market!!!
