subject: Strategizing to Make a Mark in The Share Market of India [print this page] Strategizing to Make a Mark in The Share Market of India
Strategizing plays a major role in determining the right market shares for trading. Very often, you may be following a flawed strategy thus unable to get the desired results. The share market of India is no doubt a lucrative platform for making money. Many an investor, after conducting research, finds out a couple of promising companies and starts investing in those companies with the objective of getting big returns. But this may turn out to be a flawed strategy as well.
There are many a start-up companies; investors invest in such companies on both long term and short term with the hope that these companies would make it big one day. But the truth is that out of say fifty companies, two or three companies are able to reach the top while the rest grow at a very slow pace or remain stagnant with a couple of them exiting from the scene. Shares trading thus need a cautious approach from your end. If you happen to invest in those two or three companies, your future is bright too. Becoming rich in a short span of time is certain but if you happened to invest in those stagnant companies or those that have exited, your investment will all be gone.
BSE shares are the shares of the companies listed in the Bombay Stock Exchange (BSE) and NSE shares are those dealt by NSE (National Stock Exchange) companies. Invest in both NSE shares and BSE shares across different sectors so that you spread your risks, thus protecting yourself from any major loss. This is one of the best strategies followed by many an experienced investor in shares trading. Investing in small cap, mid cap, and large cap market shares will thus help you maintain a balance in the loss profit ratio. Even if you face losses in small cap market shares, the profits gained in mid cap or large cap will not affect your financial health.
The value of a company in the share market of India can be determined in a number of ways. You can also follow numerous ways to determine the value of market shares whether it is NSE shares or BSE shares. Take into account the company's market value, or in other terms, the company's market capitalization. This market value will help you determine both the value of the market shares as well as the value of the company. This can be attained after multiplying all the outstanding market shares of the company by the current price of a single share. The calculation is quite easy; any investor with a little mathematical knowledge can do it. For example, the current share price per share is Rs. 15 and it has 10 million outstanding market shares. If you multiply it by the total number of shares, the market capitalization would turn out to be Rs. 150 million. Also take into account the size of the company while investing in it.
