1. Trying to time the market.
Trying to catch the top & bottom
Some think they can buy at the bottom and sell at top. It's very difficult.
2. It will rise again
After buying a stock they justify themselves by saying that its a good company and that they will come back.
3. Can't go more lower than this - Trying to catch the falling knife
It sure can. Again you are trying to time the market.
4. It won't go above than that
It sure can....
Sunday, February 21, 2016
The Monkey Story on How the Stock Markets Work
1:34 AM
No comments
If you’ve been wondering how the stock markets work, here is a
popular story of buying and selling monkeys that draws an analogy on the
stock market. Though this is just a fable, it is not very far from
reality when it comes to the style of functioning of today’s markets:
Once a man appeared in a village and announced that he wanted to
monkeys for $10 each. The villagers, realizing that there was no dearth
of monkeys in the nearby...
Some questions asked by beginners before investing
1:32 AM
No comments
Where can I invest?
If you are beginner you can invest in Mutual Funds to name a few HDFC top 200, ICICI prudential equity focussed. These are professional who will invest your money into markets. You can find them about from moneycontrol.com
You can also invest by yourself. In beginning you should do paper trading rather than investing actual money.
What is paper trading ?
You trade with virtual money but with real stream data.
you can use ...
Starting with indian markets
12:52 AM
No comments
Some basic info
What is a equity/stock?
A company can be divided into units called stocks/equites. So, when buy equity you actually own some part of the company.
Companies can be divided into three major categories
High Cap or Blue chip - Having large market capatilization i.e. big companies
Mid Cap - Mid size companies.
Small Cap - Small size companies.
What is market capatilization ?
Market capatilization is no of shares * value of a...
