Stock market expert Truth

Is it possible to predict share/stock market trends? I think it is impossible but long term share market trends are totally depending on the fundamental of the economy. Most of the investors watch daily expert expresses their opinion on the next or future trends of the market on business news TV channels.

Who are these expert do you know?

Most of the expert appear on the TV channels are belong to the brokerage houses. Their main aim is to earn brokerage not profit from equity market because they know the fact about share market and risk involved. They are the gainer weather market goes up or down because their earning is brokerage. I am not writing against any one but its fact.

Should we invest in Stock market or not?

This is very crucial question in which every one is interested. In this regard I want to say that we must invest in the share market if we have our own money. Do not borrow money to invest in share market. To choose an investment strategy, the first factor to determine is the time frame of the investment. Your investment must be based on your on research works. All equity investments should be ideally looked at with a time horizon of at least five to seven years or more to get best benefits. Is this a double or triple your money guarantee? Absolutely not! Now, since we understand the concept of a share, the returns to expect should always be in line with the growth potential of the company. Sentiment may run the market in the short term but long-term returns are always driven by fundamentals of the company and economic condition of nation.

Identify good companies

The next important factor in determining what kind of stock to invest in is to identify the objective of the investment. Is the investor looking at companies that pay high dividends or companies with a high growth potential? Companies that do not pay regular dividends are not always undesirable as these usually plow back profits into expansion plans and other growth potentials resulting in more aggressive returns than a high dividend yielding stock. This decision would depend on the investor’s appetite for risk as taking higher risks have the potential to earn higher returns.

Indian Stock Market Future

The economy of India has proven to be highly conducive in terms of domestic and foreign investments, in recent years. India Investments have been predicted as the propelling force towards the country's attainment of self-sustained growth by rapid industrialization. The most discussed forms of investments in India have been Foreign Direct Investment and Investments made by NRIs.

Basic point to be kept in mind while investing in stock market.

(a) Invest long term perspective.

(b) Do not invest on the advise of some one ( TV Channel expert own frined etc.)

(c) Know about the Company where hard earn money is to be invested.

(d) Avoid day trading and Future and option trading.

(e) Invest in good company stocks.