SHARETIPSINFO >> Articles Directory >>Tips on Stock Market comprising NSE and BSE two major exchanges
Indian share market comprises majorly of two stock marketing groups: NSE (National Stock Exchange) and BSE (Bombay Stock Exchange)
NSE is counted as NIFTY & BSE is termed as Sensex.
Trying to get the maximum of both the Exchanges, you to follow the basic rules which are give below:
Basic Rules of Indian Stock Market
- Whenever Market is High It Will Fall
- Whenever Market is Low, if there is no external Factor, It Will rise.
A general opinion comes from the people who are the investors says that when market is high, we will invest in shares, as doing intraday trading is risky.
Rather we advice that when market is going high, investment is not that safe as it doesn’t make any sense blocking your money when SENSEX and NIFTY are already zooming high.
What you should do at that time is just to wait for correction to come and then buy at lower price. Till the time stick to intraday stock trading.
According to the experts, the best time for investment is when market is down, though by keeping fundamental’s in mind.
And also according to the experts the best time for intraday trading is every day. Condition being some professionals are assisting you with their analyzes of stock market. Because without the guidance of any professional, you may bear lose of handsome amount being market working in your favour as there are some shares that goes unexpectingly opposite the way of majority.
What to do when market goes continuously down?
There are few things to be kept in mind regarding your money.
Remember this is your hard earned money not anyone’s. So you have to take care of it and be cautious at every level, if you are taking calls from experts then also.
- Always follow Indian stock market.
- When market falls, you need not have to be panic, when market zooming don't be overjoyed as you can earn and loose both ways around.
- If market goes up you first buy and then sell and if Indian stock market goes down, you first sell and then buy.
- Never hesitate to ask for professional’s advice.
What must you do now?
This is the question probably every equity investor would have asked himself a number of times in the past few months since they have entered into this market to earn some extra money.
With the stock market moving to heights before drowning to gravity, it's easy to make anyone nervous or over-excited.
Here's what we suggest you to do to maintain your cool.
What you must NOT do
1. Don't ever panic
Accept that the stock market is very volatile, that it can go any way at any point of time.
If the prices of your shares have increased, then there lies no reason to get rid of them in a hurry. Stay invested if nothing fundamental about your company has changed.
Same should be done with your mutual fund. Does the Net Asset Value dips and then rises slightly? Hold on. Don't sell unnecessarily. Let it gain stability.
2. Avoid making huge investments
When the market dips, buy some stocks. But don't invest huge amounts. Pick up the shares in stages.
Keep some money aside for a few companies you believe in.
It’s a basic fact that investors should buy when the market has reached its lowest and sell the shares when the market peaks. But the fact remains; no one can hold the market.
It is impossible for an individual to encounter when the share price has reached rock bottom. Instead, buy shares over a period of time.
Pick a few stocks and invest in them gradually.
3. Mind your expenses
When you buy and sell shares, you will have to pay a brokerage fee and a Securities Transaction Tax. This could lowers your profits specially if you are selling for small gains.
With mutual funds, if you have already paid an entry load, then you most probably won't have to pay an exit load. Entry loads and exit loads are fees levied on the Net Asset Value (price of a unit of a fund). Entry load is levied when you buy units and an exit load when you sell them.
If you sell your shares of equity funds within a year of buying, you end up paying a short-term capital gains tax of 10% on your profit. If you sell after a year, you pay no tax.
What you MUST do
1. Get rid of the junk
Any shares you bought but no longer want to keep? If they are showing a profit, you could consider selling them. Even if they are not going to give you a substantial profit, it is time to dump them and utilise the money elsewhere if you no longer believe in them.
2. Believe in your investment
Don't invest in shares based on a tip, no matter who gives it to you.
Work cautiously. Invest in stocks you truly believe in. Look at the fundamentals. Analyse the company and ask yourself if you want to be part of it.
3. Stick to your strategy
If you decided you only want 60% of all your investments in equity, don't over-exceed that limit because the stock market has been delivering great returns.
Stick to your allocation.
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