SHARE MARKET - DEFINITION

SHARE MARKET - DEFINITION

There are so many ways and methods in the Share Market to make good amount of money as profit. But the people those who are really trying to make the money within the shortest period is really landing in the trouble. It is not at all a Gambling from Experts point of view and Gambling is not the way to make money to run one's life because it paves way to lose. We are used to call it as a "SPECULATION BUSINESS" and taking high risk is the high reward in our industry.

WHAT IS SPECULATION?

For an example, if any news leaked out that there is a conflict between Corporate Company's Directors, we can see a big slide in their group of companies. In that case, we must Sell or Short Sell those companies' stocks in the first place. Similarly, If Central Government's budget is favourable to some sectors, you must be the first one to initiate the buying action. Your loss will be beyond your imagination if you do it against the speculation.

There may be many ways but remarkable methods are only two. What are those? i) INVESTMENT and ii) TRADING.

WHAT IS TRADING?

Trading is nothing but buying the Shares on dip and Selling the same at high. But buying shares at the right time will increase your profit amount, otherwise there will be only a meagre amount as profit. But many of us is buying when it is trading in the high rate believing that it will go further up. Rather doing that you must become heedful to the Market Experts and Analysts and what they are actually trying to suggest us about this particular stock. When you do like that, first of all, you will not lose your capital money, secondly there will be a sizeable income. Most importantly, it will be called as a Confirmed Trading, on the contrary it would be called as a Speculation Trading.

WHAT IS INVESTMENT?

Savings of money is very important for every man. Deposit of the same for few years will be doubled especially your capital amount is preserved and also there is going to be a constant returns. This is called Investment. But there is no guarantee both for your Capital and Returns in the share market just unlike Fixed Deposits (FD), National Saving Scheme (NSC) and Kissan Vikas Patra (KVP). Apart from this, some other method of Investment system is Gold Investment and Land. Here you do not need to bother too much but if you invest it in the stock markets, you must be always watching it very closely otherwise loss will be huge.