There is a strong truth in the belief that stock/share investment is risky because of fluctuations in the stock market. It is only normal for the people who are new to enter the stock-market business.
Indeed, there are occasions when even experienced stock-market investors cannot estimate or digest the fluctuations in the hare-market. They should tackle such shocking turns in share-market by acting wisely and not tending to be afraid.
When the share rice of a particular company is low, some people indulge in buying a large share of the same. However, it is a fact that a low share-market price is an indication of its low value. Rather than thinking of buying shares of lower values, it is advisable to buy good quality shares. It is not wise to buy a share when it becomes low suddenly. The company could have halved or quartered its share.
The most common problem encountered is that too much greed to strike gold quickly. The stock investor should be watchful & steady in his actions.He/she should analyse thoroughly and then take decisions. Do not get tempted by the various advertisements which are proliferating now-a-days!
Beware about e-mail & sms on this regard. They would be quite tempting but don’t fall for it. It is better to watchful all the time. Presently, FMCG shares sell the hottest in the share-market. However, don’t be led to believe all of them might be profit-earning ventures.
Be aware that stock-market has its ups & downs as encountered in our personal lives!
Some companies change their names just in order to be attractive to the investors. So, be careful and don’t indulge in making any blind decisions. Also, please don’t decide based on the company’s account statements alone – there are several other factors to be considered. Please note that the stock market has seen several companies which have given fraud account statements!
Take decisions only after considering the issue in several aspects. Be watchful. Remember – though struck-market is risky, it does earn handsome revenues for the intelligent investors!