In India outside investments began in 1990. To began with investment a traders/investor has to primarily register himself either with foreign institutional investor(FII) or any of the sub-accounts of registered FIIs.
These registration are granted by regulatory body SEBI(Security Exchange Board Of India). Provisions for foreign investors to invest in Indian stock market is also different. They are not directly allowed to make investment. Only client with having net worth more the USD 50 million are eligible to get registered themselves.
Indian stock market consist of primarily two markets: primary and secondary. In primary market trading on newly issued securities are done and in secondary market trading on already existing securities is done. Market keeps on fluctuating because of various factors.
To cope up with its movements traders can ask market experts suggestions on Stock Tips for Today. By doing so they can trade with more accuracy.
Investors and traders have some of the following myths about stock market :
1) Stock market is meant for high class rich people only :
Traders and investors believe that stock market is a place where only a person with huge capital can invest. But this is not the case. Market has provisions for every type of trader. Traders with less risk bearing capability and capital can as well invest his capital in stock market to increase its worth and enjoy earning good returns.
2) If a stock is following an upward trend then it must follow downward trend as well:
There is no implications of laws of physics in stock market. No gravitational force will act to pull stocks back to its original position. We have many stocks whose performance are improving continuously. If they started with current market price of Rs.100 then at present their stock prices are at current market price of Rs.500 or more.There is no reason which can explain why the price of stock will fall again to its initial price.
The price of a stock is totally reflection of a company's performance. If a company has an excellent work force and management it is most likely to perform fall and eventually performance of its stocks will be good.
3) Having a vague knowledge about market is also fruitful:
Generally people believe that having a little knowledge is better then having no knowledge about it. However this is not the case with stock market.Investors those who really understand market and keep themselves well updated with market movements are the only ones who succeed in stock market.
If an investor is not having time to fully understand market then he must opt for an advisor to give him suggestions on Commodity Tips for Today. By doing so you they can improve their market efficiency.
4) Gambling and stock market investment are the same phenomena:
This is not true. Both are different concepts. Investment in stocks gives you an ownership in company depending on the number of stocks you hold in that company.Also assessing a company's performance is not at all an easy task.On the contrary gambling is merely movement of capital from a looser to winner.
Like every investment stock market investment also demands for hard work and effort. Mistakes made due to poor knowledge about market can be very injurious to your financial health. Taking advisors helps for Stock Tips will definitely help to sustain in market with long term profitability.
The article is origionally published at- https://justpaste.it/The-4-Myths-About-Stock-market
Keywords: Commodity Tips, Stock Tips
By: Epic Research
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