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‘Market’ the commonly used term for the country’s 2 biggest stock markets are a common point for buyers and sellers of shares. Like other physical commodities that were traded in local markets, shares too first existed in physical (paper) form. There were stock markets in almost all major cities of India, where share brokers acted as buying or selling agents on behalf of the customer and physically met to trade.
Technology changed the way we live, and these markets were no exception. From trading floors where brokers screamed out share prices like the local subzi mandi, our markets changed to sophisticated technological zones where brokers operated on slick terminals. Most brokers now don’t even need to visit the exchange since they operate on behalf of their clients from their offices.
Equity investments offer a great opportunity to investors, but only if done with a considerable amount of care. As novices we often make the mistake of trailing the markets, i.e. when we see that a particular stock has performed well, we tend to put in our money into it, often after it has already made gains. As a result, by the time we invest, many others may already be booking profit as a result of which the stock price may see correction. So as a beginner if you look at investing in the share market here’s a list of things you must look at:
1. Overall performance and outlook of the sector – ensure you understand the industry
2. Start with a small amount or a small portfolio -
3. Despite a small investment, try and diversify as far as possible
4. Avoid the herd mentality – don’t necessarily put in money into a stock many others may have bought
5. Never be emotionally attached to a stock
6. Don’t be greedy, when you have made a good amount on a particular stock, please exit.
7. Monitor on a regular basis.
Stock markets offer great investment opportunities, but only if we are smart investors. If you are looking to become a first time equity investor or wish to discuss your existing investments, get in touch with our team of experts.
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