Equity Investments: Hot Stocks
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26 views;
last activity : 07 06 2010 20:18:09 +0000
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Quick returns.
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Just like gambling
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It's an exclusive club
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This is an important point to note. Investors entering the equity markets
with a very short-term horizon to make quick money are exposed to very high
risk, as the markets are volatile in the short run and can move either way. These
investors generally invest when the bull market is peaking. A rising market
attracts money which would not have come to it otherwise. Confidence among
investors goes up and they start believing that the markets cannot fall. Rising
confidence starts bringing short-term money into the markets as investors
suffer from the illusion of control. And when the cycle reverses, investors
with the short-term horizon and money suffer the most. Stock markets are not
the place to make quick money. Ideally, you should invest money that you would
not need in the next three years in the markets.
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10 different people may have 10 different takes on the stock market. Long term investors surely make a lot of money. There are some who neither make a lot of money not loose a lot and there are others for whom stock market is as thrilling as gambling as these are the ones who keep losing money in the stock market.
again gambling and quick returns are some what inter-linked. but however nowadays people have become more aware about stock markets so they do not think it as gambling, but surely myth of quick money is always their in their minds.
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A major reason as to why investors in |
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Many believe that the stock market is an exclusive club of brokers and big
investors and that one needs a lot of money to profit from investments in it.
The stock market was out of the reach of lay investors till some time ago. But
technology has changed the rules of the game. Now, with a demat account,
investors can buy just one share. The cost of transaction has come down
significantly from 5 per cent of the value to 0.5 per cent. I think there is
more of |
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Great insight Beena,,,thanks for sharing. |
I want an increase in the per capita income, as most of the equillibrium in the country is not in balance where still rich is richer and poor is becoming more poorer, so if the per capita income is increased where the population is having a sustained... |
Theory and practical are two different things for life. These books are written by only one persons experience but there are different situation and human beings are different they act according to that and not by reading and remembering any books. |
