Wednesday, December 3, 2008

Tading Indian Stocks

What do you trade when you trade stocks? You are trading in equity shares of Indian Companies.When you are buying the equity shares you are participating in the ownership of the company.You become owner of that Company to the extent of the value of shares you hold on the company.When you buy shares in a company you are providing capital for the company which is represented by the equity shares.Here your investment is exposed a higher risk than the deposit in a bank or post office.You entrusting the company in which you own shares to manage risk for you.
Which type of company you want to have a participation ? You want to invest your money in a company where you get a return more than the bank interest and the value of your investment should be appreciated.Also you want to invest in a company where there is a steady growth.Operations of any company should be evaluated from the market feed back , while the financial statements would give a view of the profitability of the company.Trading is a short term transaction.You buy and sell the stocks or hold the stock for a day , a week or a month with the objective to make a profit from selling the stocks as quickly as possible.Muraleedharan