Newly comer for stock market feeling is different from other who has already gained the some market knowledge suffered from confusing, lack of knowledge and misunderstanding. Stock market trading is big frame work of rumors, believes, fears, expectations, reactions and panic .Stock market trading means not buying desired securities at lower and selling at higher price. Trader’s anxiety and controlling behavior is playing major role in stock market trader career. Stock market trading means not always profits more times losses also. The power of the stock market is playing with trader attitude and anxiety. Stock market catches trader’s behavior easily.
New comer for stock market trading dreaming like billionaire in stock market trading and he is dreaming like a their holding stock goes up above 20% after a coffee break. Already so many experts’ theories are failed in the market trends.
Investing is different and trading is different.
Investor is long term associated with the company securities and most of his profits getting from dividends. He is not expecting short term returns with the company. He believes the company products, services and operation. He doesn’t react for short term fluctuations of the company share prices. One of the most important benefits of the investors is bonus and splitting of share values. In history most of investor is interested to invest in commodity like gold, silver and other metal .Real estate also good investment opportunity.
Long term investments are not possible in derivative financial products due to feature of the derivative product. The investor want to invest in long term investment in derivative products some stock exchanges are offering deep in the money call/put options and deep out of the money call/put options.
In mutual fund investment long turn is possible in closed ended type mutual funds. One of the best investment advantages in mutual fund investment strategy is systematic investment plan. Compare to the equity market mutual funds are less risk. Free from high volatility and speculation.
IPO investment strategies
Initial public offer is good investment. Comparing to the other investments .IPO is the process of issuer gets the capital resource form from the people. Through this process, a private company transforms into a public company. A company selling shares is
Need not to repay the capital to its public investor’s .the investor sell company shares in stock exchange or other secondary markets. Equity, mutual funds and debt products are available in initial public offer expect derivative financial product.
Tips to Invest in good IPO
- Take a deep knowledge about the company operations and service.
- Follow experts review about the company related to stock broker and advisory companies.
- Read the prospectus carefully.
- Observe credit rating agenesis ratings about the IPO.