subject: How Market Statistics Influence Choosing of Potential Shares [print this page] How Market Statistics Influence Choosing of Potential Shares
Is investing in the stock market a complicated affair? Do market statistics confuse you? Such questions are natural in the novice investors' minds. For them even selecting lucrative shares from the chart displaying the most active shares proves to be a cumbersome task. Lack of market knowledge will only make you feel the complexity of market forces, making it difficult for you to understand the intricacies. Lakhs of investors invest daily, all driven with the objective of reaping gains. And who doesn't want to be on the winning side? But not all are blessed with the favorable stars; if fifty people gain, another fifty incur losses. Every investor does take into account market statistics whether it is taking impulsive buying decisions or informed decisions. Wise investors know the tactics of choosing the best and lucrative lot from the list of the most active shares.
And ultimately the losers who invest in bulk panic. There are a number of reasons why investors fail to live up to their financial expectations in the shares market. Here are a few points:
Majority of the investors are driven by the notion that all they need to do is invest. They lack trading knowledge and if luck favor them they win, say once in five to ten investments or face losses in all. They feel stock trading is the short cut to making big money. Market statistics, most active shares, stock news, etc. hardly matter to them
Most investors are driven by their emotions while taking purchasing decisions. It then becomes equivalent to gambling as the practical aspects as well as brainwork and market volatility are not taken into account. Without considering the conclusions drawn from market statistics, they just pour in the money
Many an investor follows the trend, i.e. the crowd, blindly following the treaded path. They go by rumors and purchase the stocks without actually getting into the details
There are a particular section of investors who do have access to all information but do not go through them just for the sake of being lazy. Even going through detailed information on choosing one or two shares from the most active shares seems hectic for them. Ultimately, the wrong buying decisions end them up in losses.
Experienced and wise traders know how to cope up with any market situation as they go into the details before taking any investment decision.
