October 5, 2009

Difference between share trading and share investment

I want to share my personal experience with all of the aspirants who want to start investing in share market and the one who just wants to try their luck in share trading. Well share trading is very fascinating and glittering aspects of share market in which you can just double or triple your money even in a single day, isn’t it great? Yes it looks great but the darker side of the coin is you can even loose all or may be more of your money on the same day as well. You are now scared, aren’t you? That’s because share trading in not investment and its just a speculation on the basis of which you have to guess the direction of share price of a particular company. And if you can guess it right the jackpot is yours. Well and it can’t be in your favor without the combined effort of your research and of course with your good luck. I also tried this without learning the actual meaning of share investment or stock investment. Investment is much broader term than share trading. Investment means you should put your money on a company’s share for long term i.e. approximately minimum for 5 years. As per Warren Buffet “ if you are not thinking to keep shares of any company for 10 years then don’t even think to buy it.” Well it looks very tedious or boring but this is the simple and successful trick which we need to learn. You just need to pick share of any good company after checking its past record and analyzing its financial status and then buy shares for investment purpose and not just for trading. By doing this you eventually minimizing your risks and can easily earn interest 20%-30% on yearly basis. And its pretty good interest rate as double than fixed deposit of your bank. This is what I am doing now and also suggesting the people who wants to get benefits from the stock investment. And the most beneficial part of the stock investment is that your money is always ready to use and it will not take one or two days to use it as in case of fixed deposit. If you require money then you can just sale the some no. of shares out of total within 10 minutes and withdraw your money through ATM, see very simple. And this you guys must also follow. Best of luck and let me know if its helping you or not?