Are you a T20 or Test match share market player?
For the short term, technical analysis is the key, daily trading volume, buying and selling pressure, resistance, support, trends, the pattern needs to be analysed from charts. There is always BUT in the story.
There is a small link between cricket and the stock market.
These days watching T20 is fun, thrilling, and exciting, likewise trading in the stock market is also very interesting, and quick money can be made out of it.
You might have heard expert commentary on when to buy a stock with an expectation of a sudden increase in the stock price of (5-10) per cent in a week or month time. This happens when there is favourable news or government policies announced for the sector in which the company is operating, or due to company announcements like strong deals, buyback etc.
For the short term, technical analysis is the key, daily trading volume, buying and selling pressure, resistance, support, trends, the pattern needs to be analysed from charts.
But if you see the past generation, they had enjoyed test matches with a good amount of patience.
Likewise, investing in the stock market for the long term requires extreme patience and discipline. The investment horizon should be in the range of 5-7 years.
For the long term, fundamental analysis is the key. Knowing the business model of the company, understanding the numbers like sales growth, profit for past years, looking at crucial ratios like P/E, ROE, profitability margins compared with peers are some critical factors to ponder upon before an investment.
If you feel you don’t have time/ expertise for it, get recommendations from SEBI registered advisors or choose a suitable mutual fund according to your risk appetite.
Trading or investing, which fascinates you more?