Risk in Share Market
Risk in Share Market refers to the uncertainty in the return one can get out of investing in the stock markets. The returns can be at times negative, meaning that the investment will eat your capital or in simple terms, the value of your investment may be lower than the actual amount one has invested.
It is worthwhile to note that investing in the stock market is not just mere speculation. It is important for a person to consider the performance of the stock and also the credentials of the company before investing in a stock.
Investing in Share market
One must understand that anyone who invests in a stock market expects to gain high returns. The investment should never be treated as an emergency fund. It should not be set aside for falling upon in case of an emergency as it can be possible that the value of the stock in which you have invested is low when you are in dire need of it.
So, the risks in share market can be minimized a lot by effectively timing the sell and purchase of stocks. Also, diversifying is the mantra in the stock market. The more you invest in different products, the less you become dependent to a particular stock.
Recommended Read :
- What is Rights issue of a Share?
- Convertible Preferred Shares
- What is Capital Market?
- Indian Stock Market Trading Hours
- Guide for Stock Trading in India
- Indian Online Stock Market Trading
- Market Timing of Indian Stock Markets
- Indian Stock Market Holidays
- What is Volatality?
- What is a Volatile Market?
- What is Pre Open Trade Session?
- What is STT All About Securities Transaction Tax?
- IIP Data and Stock Markets
- Online Trading Brokers in India
In any period of the time, there have been risks for humans to deal with.It can be rightly said as suggested by the writer that without risks, life could never be imagined to flourish.Same goes for investments in my opinion.Share market let you discover the possibilities of the market while stating in BOLD letters about the market’s uncertainty.
Investing in share market has been an open and shut case for many traders while it is still a myth to lot of youth as well as people who have come of age. The fear of loss and the myth that share market is a game of mere luck and chance has resulted in diversion of people from share markets. This article keeps a balance on the risks and ways to manipulate them.
I have personally known lot of people investing in share market. It is to me like a weird jungle where at times all the rules apply and at times no rules. Riches turn into rags and vice versa. But the only best thing about it is the rate of return is higher than the savings and the mutual funds.
Investment in share market is a risky thing in my opinion unless one is very well versed in the workings of the share market. But on the other hand, nothing risked, nothing gained. The workings of share markets are very complex and at any time, the shares could rise or fall. One must pull out at the right time in order to avoid huge losses.
One thing is certain, you should never invest the money you need for your survival. Always invest the amount of money that won’t jeopardize your everyday living, if something goes wrong. One of the best advice, concerning investing in a stock market is, as the article stresses out, always try to invest in different areas.