Monday, June 30, 2008

How to deal in Indian Share Market

How to Deal when Market is too volatile.

There was a sudden rise in Sensex and now Major fall. However as declared , on Tuesday i.e. 23-May market will see some green movement and it was there , but still it is expected that major fall has yet to come . Only after that fall market will become stable.



Everyone say's that this is the worst time for investment but we say that this is the best time for booking maximum profit. Just trust our work and be with us.


To be on safer side follow following steps: -



1. Say No to "PANIC ". Don't take wrong decision in Anger , Frustration or Tension

2. Avoid Overtrading.

3. If you are new trader simply avoid intraday trading .Let market get settle first then try it.

4. Before trading think and keep your eyes open, don't blame your luck for looses.

5. Buy only Fundamentally strong shares right now at low price and keep them as your Long term investment.

6. Avoid selling your shares when market is Low.

7. Don't simply invest by reading and watching stats. Let professionals help you out.

8. Don't follow any trend blindly. Think and invest it's your money use it wisely.
Stocks Glossary
Account Period Settlement:
The settlement process where the buy and sale transactions done for a particular period (week or fortnight) are aggregated and only the net obligations are settled after the period is over. Indian securities market had weekly account period settlement before rolling settlement.

Allotment:
A letter sent to the successful application about allotment of shares/debentures against his application.

American Depository Receipts (ADRs):
A certificate issued in the United States in lieu of foreign security. ADRs are traded in US markets for all intents and purposes.

American option:
A put or call option that cane be exercised any time before the expiration date.

Asset Management Company:
The company that handles day to day management and operations of a Mutual Fund.

Arbitrage
The process of benefiting out of price differential in the same scrip between two markets or because of price difference in the scrip in the underlying market and futures or derivative markets.

Arbitration:
Settlement of claims differences or disputes between member of a stock exchange and another member and between a member and his clients, sub-brokers, etc., through appointed arbitrators. It is a quasi-judicial process that is faster and an inexpensive way of resolving a dispute. The stock exchange facilitates the process of arbitration between the members and their clients in accordance with the bye-laws of the exchange.

Ask
The price which the seller of the security wants to sell the shares owned by him.

Auction:
An auction is a mechanism utilized by the stock exchange to fulfill its obligation to a counter party member when a member fails to deliver agreed securities or make the payment. Through auction, the stock exchange arranges to buy good securities and deliver them to the buying broker or arranges to realise the cash and pay it to the selling broker


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