Investing in the Indian stock market or for that matter any other stock market in the world has always been considered as a high-risk affair, learn what are some basic things one should know before venturing into stock market. This information is brought to you by Kotak Securities India’s one of the largest <a href="http://www.kotaksecurities.com/aboutus/">share broking firm</a>, we also offer various services like online trading, <a href="http://www.kotaksecurities.com/whatweoffer/demat-account.html">demat services</a>, mutual funds IPO investments and many more.Visit www.kotaksecurities.com for more information.
Know Your Investment Style
Know Your InvestmentStocks
• Investing in the Indian stock market or for that matter any other stock market in
the world has always been considered as a high-risk affair.
• Some of the key reasons why time and again gullible investors have lost their shirt
in stock trading are:
• An innate desire to follow the crowd
• Lack of insights or credible information
• A fairly slapdash approach to investing in stocks
• A systematic approach to stock market investment together with a fair bit of
discipline can ensure that you stay in the green most of the time and get optimum
returns on your investment no matter which direction the markets are heading.
• If you are new to the world of stock market investment, it would always be a good
idea to understand your investment style and risk appetite. Here’s why.
• Before you venture into the stock market arena, you need to determine or identify
your investment style.
• Are you here to:
• Trade (short term gains)
• Invest (long term)
• Trading falls in the high risk category where investors indulge in short term trading
with fairly thin margins – a good example is day trading.
Things to keep in mind
• Since the timeframe is short, the element of risk shoots through the roof with
rumours, speculation, and emotions riding high.
• Trading requires a lot of expertise in doing your research well and understanding
market trends, the need to be always on your toes, and being up to date with a lot of
others factors that impact stock prices.
• Failure to spot even the tiniest of signals can have devastating effects.
First Time Traders
• For newbies, this doesn’t mean that you shouldn’t indulge in day trading or short
• You will of course have experts in the field who track the share market live and can
provide you valuable information in terms of how and when to execute a trade.
• However, it is always advisable to tread cautiously & start small as when it comes to
timing the markets, even the most seasoned players have bitten the dust.
• All that the investor needs to ensure is to do plenty of research and pick the best
possible stocks to build his investment portfolio.
• A lot of other factors come into play such as:
• Diversifying your portfolio across several sectors
• Reviewing non-performing stocks
• Constantly looking out for investment opportunities that would help grow your
investment corpus in the long run.
Kotak Securities Limited, Registered Address: 27 BKC, C 27, G Block, Bandra Kurla
Complex, Bandra (E) Mumbai 400 051. Correspondence Address: 6th Floor, Kotak
Infinity, Building No. 21, Infinity Park, Off Western Express Highway, General AK Vaidya
Marg, Malad (East), Mumbai 400097. Tel no: 66056825. SEBI Registration Numbers:
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Sandeep Chordia. Tel. No: 022 6605 6825. Email id: firstname.lastname@example.org.
In case you require any clarification or have any concern, kindly write to us at below
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