Knowledge, experience and foresight -- Your weapons in share market

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Knowledge, experience and foresight -- Your weapons in share market. True, very true! The stock market provides a very lucrative opportunity for investors to rapidly grow their money. There is hardly any better way around to making a quick buck! But at the same time, the stock market is also very unpredictable and, in certain instances, it is a high-risk proposition. The following tips will prove to be handy if you wish to make the stock market your source of income. So let us have a good look on the topic.

Know the stock market
This is the single most important pre-requisite. The stock market is an important and interesting source of income for both companies and share holders. The stock market makes it possible for almost anybody to buy stakes at a company that they know and have faith in. People who have been trading in company shares have seen it become a habit and then in many circumstances, their regular source of income. It is a very lucrative business as well for the share holder once he gets accustomed to the rules of the trade. He can see his hard-earned money growing in multiples if he is perseverant and dedicated enough. Before you make the plunge, make sure you know the stock market in and out. Research:  You will need to intensely research the stock market and come up with a table of stock items with their prices. The following will help you to increase your understanding:

1. Get yourself books on the stock market. There are lots available in the market. Or you might also be able to borrow some from your local library.

2. There are numerous websites that provide valuable information about the stock market. Important topics like “How to start an account in the stock market”, “How and when to buy/sell” etc are all covered.

3. The TV has a wide array of dedicated business channels, which should certainly help. Tap that remote!

Get some hands-on experience
Gaining experience is central once you have decided to make the plunge into the share market. This will promote the growth of your hard-earned money and safeguard it from losses. Never listen to street hype. These hypes are half-truths, blatant lies or completely outdated ’facts’. Never rely on them. If you do so then you would find yourself in a very bad condition. You would be ruined financially. You can do the following.

1. Subscribe to SMS stock alerts. Almost all mobile service providers offer this facility. These frequent alerts will keep you informed of the current position of the share market. This is a boon if are constantly on the move and cannot be hooked on to the idiot box or are unable to get online.

2. Keep track of share prices/current market status on the internet. There are numerous websites to cater to this requirement. Make the move on stocks that show better and faster growth. Zero in on the best few fastest growing stocks. Look out for takeovers and mergers – they are important factors for spectacular stock growth. Never put your hard-earned money on stocks you do not trust fully.

3. A simple and effective way to know the current market status and the current value of shares is to use the television. Many channels cater exclusively to the stock market affairs.

4. Capitalize on shares which you know are doing well, and which the market does not know much about.

5. Buy/sell at the right time. There is a simple thumb rule:

1. Buy when the market is LOW

2. Sell when the market is HIGH

Have a foresight
Always plan in advance. Form a personal strategy that you can believe in earnestly. Once you have formed your own strategy of functioning, stick religiously to it. There will be hindrances – there will be a lot of detractors in the market who will tend to ill-advise you. Do not invest on shares depending on a random tip without thorough investigation. So now we can safely say that Knowledge, experience and foresight -- Your weapons in share market.

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