Advantages And Disadvantages Of Trading In The Indian Stock Market
Advantages And Disadvantages Of Trading In The Indian Stock Market
Profits and losses are two sides of the same coin. Had investors feared the loss aspect and stayed away from trading in the share market of India, this sector would not have flourished as it is booming now. For a few, investing in a share in India is like gambling; for them loss in a couple of trading ventures will bring profits in the next two ventures. But how long can the gambling prove worthwhile. It may also happen that repeat losses with no gains drains your wealth and ultimately you are left with no option than quitting the share market of India. Following of strategies and guidelines will only help you make a mark and experience a win-win situation.
There are also a few sections of investors who consider trading of stock in India as addiction. Why it is termed addiction' is because of the continuity in online trading despite losses with the hope that a time would come when continuous profits will also get showered. Of course the amount invested is minimal so that no financial crunches are witnessed despite the losses. There are many who do get quick cash in online trading of share in India and the wheel of fortune does often turn in their favor.
What are the advantages of online trading in the share market of India? The greatest advantage is that if you are well equipped with the nuances of the trade and know how to select potential stocks, there is no limit to the amount of the returns that you will get. It is no surprise if you find many an individual living lavish lifestyles, vacationing to exotic locations, and enjoying every moment of their lives even with simple jobs. It is all due to the big gains that they receive after investing in the Indian stock market. So, you can be part of the race too.
The disadvantage associated with online trading in the Indian stock market is loss of money. This generally happens due to lack of knowledge about the market of share in India. Without the basic knowledge it is like blindly investing, trying to hit the bull's eye with the arrow without the least of knowledge in archery. In case the arrow strikes the point, it just happens by chance. And there cannot be chance wins repeatedly in the market of stock in India. Here are few tips that will certainly prove helpful for novice traders in the share market of India:
Unless you are completely sure about the outcome never opt for short selling
Start with inter day online trading and then switch to intraday
Spread out your money; opt for both short and long term
Be cautious in intraday trading as it is more risky
Emerging markets are more lucrative than other markets
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