Stock market is a risky and tricky market where companies sell there shares in order to get profit. Purchasing shares of a company means you are getting ownership of that particular company in every situation of profit and loss.
Strategies of Stock Market
Stock market consists of multiple strategies which can be followed by a beginner and experienced stock holder.
Get complete knowledge
This is the most crucial step as a beginner. Getting complete knowledge about stock market like how to buy them, how to trade them and how to sell them is the most relevant information to be known by every investor before stepping into this market.
Don’t invest in one stock
Never make a mistake or create risk for yourself in investing your whole amount in purchasing one stock only. In this way the chances of getting loss increases, if the stock fail to perform in market then you will lose all the money invested in it. So it’s better to purchase multiple stocks to lower down your risk and if one stock value becomes low then there is no need to worry as you have more stocks with you whose value can provide you more profit.
Buy low sell high
This strategy is followed by millions of investors. As this is the right way to make profit from this market. Buy and hold policy means purchase stock and hold them up till the time you notice any increase in its value. But some investors choose to be a Day trader where they buy stock and sell them the same day in this way they hardly get any profit but only a little increase in there value.
Type of stocks
There are 3 type of stocks available in stock market let us discuss in brief about them.
Common Stocks
These refer to as a stock that has more value in market. An investor who buy these stocks have complete right in that company who’s stock you are purchasing like right to vote, equality and get proper share of dividends.
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Preferred stock
These stock are some how different from common stocks. Here the investors get only a share in dividends of a company.
Unlisted stocks
These types of stocks are not listed in stock exchange market and can be either common or preferred. Aldo these stocks are buyed and sold in secondary market.
Stock exchange market plays a main role in stock market. As here the exchange of stock between buyer and seller took place. Companies have to list there stock in this market in order to sell them otherwise unlisted stocks will not be sold in this market.
If you have decided to invest in this market then make sure you have backup in your account, also you are strong enough to face any situation whether it is profit or loss. As this market is unpredictable, it provides you with unexpected item which you can not even think. So be ready to face any challenging situation in this market.
About The Author
Gaurav Heera is a Stock Market expert, Analyst & educator having more than a decade experience in the stock market industry. Currently he heads Delhi Courses an institute best known for its best and affordable stock market course in Delhi.
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