Because most of the folks have very little plan concerning the capital market, they can not invest during this sector. Many folks get frightened after they hear the name stock exchange once more. He thinks that the stock exchange may be a lure to loot everything. however actually their construct isn’t true. This sector may be a profitable investment sector if you recognize a way to invest properly.
Rules of buying share
There are certain rules that investors can make if they follow them properly. The rules are mentioned below:
1. Always be updated: The biggest reason behind not succeeding in the stock market is the ignorance of the investors about this sector. Therefore, before investing, you should have an idea about – (a) the current economic situation of the country, (b) the current state of the stock market, (c) the state of the stock market in the past years, (d) the sector in which to invest. want, what are the current and future prospects of that sector and (e) should keep in mind the idea about different categories of stocks. Because when you invest in stock market, you also become a part of this sector. So it is essential for you to have an understanding of this sector. There are more than 1.5 million investors in the two stock exchanges of Bangladesh. Keep a regular eye to stay updated in this age of information technology. You can easily reduce your risk by creating a portfolio on the official website of these two stock exchanges: For example, instead of buying shares of one company with 1 lakh rupees, buy shares of several different companies with that money. You will not face much loss even if the share price of any one company falls. It is best to build a portfolio across different sectors. If you have enough money to invest, stock market experts suggest building a portfolio of at least 30.
2. Invest for the long term: After buying shares, hold them for a minimum of three years or more. Again, many times, it may seem profitable to sell it in a short period of time. But be patient, wait for the best time. The world’s most successful investor, Warner Buffett, considers it the most profitable investment strategy.
3. Some tips on buying and selling shares: (1) Try to estimate in advance what the price of a share will be in the future. For example, the stock price of a company falls by 1% in the first 4 days, then increases by 10% on the 5th day. Here you can buy shares on 1st 4 days and sell them on 5th day for sure profit. But this method will not give you much advantage as the stock market of Bangladesh is very volatile. Here the stock price will be determined according to the demand supply principle. Here everyone will want to buy shares on the 1st four days and sell them on the 5th day. As a result, the demand for the stock will increase in the first four days, and the price will also increase. However, in reality it takes some time for the stock market news to reach all the investors. And you have to make use of that time. (2) If you are at a loss, do not stop trading. Your share price is fluctuating every day. You try to buy at the lowest price of the day and save your previous shares at the highest price. Which is called netting or knitting. (3) Do not take advice from inexperienced people. Always try to avoid rumours. (4) Never take wrong decision in hope of more profit. (5) Do not lose heart. If you invest wisely, you have nothing to be disappointed about. However the market price goes down, it is temporary. The company will give you the profit at the end of the year. You may not gain much but your money will not be lost. (6) Just as you go around the market and buy good things while shopping, follow the same method while buying shares. Most people in Bangladesh invest in share trading without understanding, and some unscrupulous traders profit from it. But if you can follow the mentioned few rules, then you can become an efficient investor in this sector.
What is the word “Share”?
The word share is English. In Bengali it means that share, part, commonness etc. Usage varies by field. Within the case of the corporate, the substantive sentence of share is to divide a definite range of shares in a very company into equal shares as an example, commercial bank has opened its 3 large integer (3,00,000) shares of Rs.10 every within the market or to the overall public within the style of a script or heap of a minimum of fifty (this isn’t a particular range, solely given as associate example) WHO bear the prospectus of the corporate. They bought the shares of the corporate in proportion to their possession. The a lot of range of shares he owns, the a lot of shares he owns. A sole owner of the bulk of shares could also be entitled to interact within the management of the corporate. Share holders additionally own the profit or loss of the corporate in proportion to the amount of shares they hold. A exchange could be a place wherever solely the shares of assorted financial obligation corporations (public restricted companies) that square measure registered on the stock market square measure bought and oversubscribed. It’s additionally known as capital market. There square measure 2 ways in which to start out a business during this market-initial preliminary i.e. initial (IPO) shares within the market after they square measure new introduced by applying and obtaining through lottery you become the owner of any company at a proportional rate.
The second is that you can easily carry on this business by buying and selling in a broker house. It is called secondary market. But intelligence is needed, it is easy to gain profit if you do this business with a cold mind. Suppose a person opens a new BO account and starts trading in a brokerage house. A neighbor asked that the stock market of Bhai Bank is looking very strong. If I buy the shares of any bank, I will benefit. Consider the events of June-July 2010. Then the price index in the market is very bullish. The daily transaction is about two thousand crore rupees. In such a situation, if a middle class investor asks such a question, it must be understood that the person has come into this business by listening to people without acquiring knowledge about the stock market. Only people have heard that the market is booming now, you can make a profit if you buy. He was told by the neighbor, buy and sell only then you will become rich overnight. The new person did not have the knowledge of when the market will fall as it is now. Because there was no, such people come to this business and lose extremely. They came to the stock market on the advice of others. Such investors have nothing to do but eventually lose all their money and return home bankrupt.
There is a saying, don’t listen to rumours. This is true in the stock market. Buy shares at a high price and now the price is going down. What to do now, such a problem is seen in most of the investors. I will tell them – try to understand the rising or falling market trends. Those who want to profit by trading shares in a short period of time can profit by trading shares in a short period of time by following the rhythm of cyclical fluctuations in share prices. But for this, there should be a good idea about whether the market trend is upward or downward at any particular time. Assume that the market remained bullish the entire time from A to B. Again there was a recession in the period from B to C, followed by an upswing in the period from C to D again. Those who bought shares at A level will benefit from buying shares at B level.
The advice to investors is, don’t listen to hype and rumours. Only then will half of the problem be solved automatically. Big investors in the market will always come to play the game. It happens all over the world. But investors everywhere are wary. As a result, those who come to play the blind game do not get very far. And the problem with our market is that most of the people in our regulatory bodies are dishonest. Even if they are identified at the beginning of the problem, it is not solved.
Tycoon is a Japanese word. ‘Tie’ means great, ‘Kun’ means a successful hero. A tycoon is a person who has placed himself in an important position by being ambitious and making the right decisions at the right time. To be a successful stock trader you also need to acquire a tycoon mentality.
Share holder should think to buy
A question thousands of investors ask every day. What will answer the question? The answer is in simple words buying shares of a good company or more than a few good companies can make a profit very easily. But one question remains, how do you know that the company you are buying shares of is a profitable company? Again, it will not be only good or profitable company, when will you buy, at what price will you buy the share of the company? Again, it is not enough to just buy, you have to sell at the right time at the highest profit. Only then you will be able to reach a stage of success in share trading. You must remember – every day, every week, different trading opportunities arise in the stock market in light of different conditions. There are a number of guidelines for getting an early idea of how and why this opportunity is created. Many stock traders have become millionaires by using these guidelines. Many have made huge profits from this market even in extreme recessions. But it must be remembered that the number of stock traders in our country who understand and know how to exploit the latent potential is very small. One thing is true, those who stick with stock trading even after failure, reach the brink of success at some point. Finally became a successful businessman. But this success requires patience and perseverance. The more knowledge gained in this field, the higher the level of success.
Those who think that gambling is a matter of luck, it is not true. Basically it is a kind of special skill, which can be acquired by any trader. Expertise refers to the ability to trade the right stock at the right price at the right time.
A stock trader (day trader) should remember that when there is a recession in the stock market and even the newspapers express extreme disappointment about the stock market, only then should you buy latent potential shares based on proper consideration.
The idea born out of my 36 years of share trading experience is that many people have lost their hard-earned precious savings due to trivial reasons, inexcusable negligence, indifference, ignorance, over-emotion or lack of hard work. It has also been seen that by using right decision, timely initiative, foresight and creative talent, unimaginable success has come in the life of many people. Actually success or failure in share or stock market trading is not a matter of luck like winning lottery or gambling. Rather, it is extremely harmful for a stock trader to hold such a view. In near future, as a tycoon trader you have to decide to buy that share today. When general traders are not interested in buying a particular share, they should carefully select and buy the share. A successful trader’s main target should be to be able to sell the stock and take home a profit when ordinary investors become overzealous in buying the stock.