SHARETIPSINFO >> Articles Directory >>Why long term investing in the stock market is not dead
Investors investing in the share market merely aim is to get a high profit from the market. Since there are no rules in terms of maturity period or login period we can also say that investors investing their money in a very flexible way. So, it is up to the investor to invest their money in a short term or long term. Investing money in a stock market is one of the kinds of business. As in business long run always pays luck and have a good charm, short tem business are also of different types but people always goes for the long term business, every must know the advantages of it. So let us have a look at why long term investing in the stock market is not dead.
Selling the shares
Stock market is formed by the different bankers and companies in the latter part of the year 1874 aim for the good opportunity in the market. A company alone cannot meet its demand in the functioning and production of new things even though they might have idea. In this case offer were made to the public, interested person known as the investor invest their money to their interested company hopping with a good return. Company sells their shares so as to meet their financial demand, investors invest their money and the company used this money with a great hope of bringing a good return from the market, as the market were volatile, one cannot predict what will happen after one hour also, so high risk is taken for the trading also trading is done sometimes by taking records from the past performance also. Even when you go for investing in the Indian stock market, it is better if you can make some research.
Surviving in the market
Short term investment doest not bring good profit from the market. Bringing out new things and even new ideas is not an easy task for the company. Forming up news ideas also need quite lot of time, like survey has to be done before bringing out the conclusion in which survey has to be done carefully. The other competitors in the market and their focus customer has to be studied well because the main aim of the company is to survive in the market in order to survive they have to get a good profit. After all this survey they can prepare to launch the new products, for launching the new products much more time is required. It is well known that unless and until the company enters the competitive market they cannot have a good profit and only this competition field brings good or bad return. If you wish to be successful in the market then it is very important that you have good knowledge about NSE, BSE…etc.
Long term investment cope well with the company If the investors invest only 10,000 also after 15 years that investment can grows to a crore also ,this is recoded from the past performance. Expertise says that if an investors invest during the year 2001 this is the time when information technology had an enormous growth in the market, by the end of 2005 our profit would have gone to more than 200 percent, after 2007 it would reach 250 percent, which shows that the company has a greater chance to use the money effectively more the long term more the advantages it grows.
Some investors might be thinking that sensex always goes up and down and inflation grows, yes you might be true, but from the year when stock market is known in the world inflation rate is different sometimes up and sometimes down and even economic problem used to be there, there is even a time when the investors committed suicide but that things went off after a short time there always a time when the market is up so, long term investment is quite often preferred. And large amount of interest can also expected since the company make use of the invest money much more. This is the reason why long term investing in the stock market is not dead.
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