THEORY OF INVESTMENTS:

Cash keeping idle: cash that kept in storage that doesn’t meant the savings unless it will be earn something to us. For that we have to invest that in some safer manner. So it will yield some money to us which makes our future in better way.

The reason to invest:
………….to face the future with uncertainty
……………to meet the cost of inflation
………………to achieve the specific goal in life
………………..to lead sophisticated way


Three golden rule for investing:
Invest early.
Invest regularly.
Invest for long term and not for short term.

The various type of investment:
Physical assets: we can invest in physical assets such as real estate, gold, commodities etc.
Financial assets: Investment on financial assets means investing in fixed deposits with banks and post office, provident funds, pension funds and mutual funds.
The most important thing is Securities market such as share trading, mutual funds.

What is meant by share:

The total capital of a company is divided into small units and each is called a share. For an example if the capital of a company is one lakh then it will be divided into ten thousand shares with the face value of rupees ten. On buying the number of the shares we want , we became the share holder of that company. A share holder has a right to vote in the election that happened within the management of that particular company. The price of the share which we bought for the face value of ten, will increase on the basis of the company performance, so that there may arise demand for the shares of that particular company.

Apart from the share value increasing, the company will give dividend to the share holders, which is nothing but a percentage in the annual profit of that company. The percentage of dividend vary with company to company. So the wise thing is buying the shares of best performing company.

SHARE TRADING - THE BASICS THEORY OF SHARE TRADING IS:

1. Buy low-sell high. As simple as this concept appears to be, the vast majority of investors do. The main thing of share trading is nothing but taking decision at the right time. That is buying the shares at low and sell it for high price which determine the success, or failure, of your investments. Your rate of return is determined 100% by regular visiting our web page www.moneymadurai.blogspot.com
2. The stock market is always right and price is the only reality in trading. If you want to make money in any market, you need to keep in touch with the performance of the market. If the market is downwards or upward, you don’t bother if you watch the company performance of your shares. Other things are, the longer you stay right with the stock market, the more money you will make. The longer you stay wrong with the stock market, the more money you will lose.
3. Every market or stock that goes up will go down and most markets or stocks that have gone down will go up. The more extreme the move up or down, the more extreme the movement in the opposite direction once the trend changes, this is also known as "the trend always changes rule."
4.Profit trading: To make a profit trading, it is only necessary to know whether market are moving or not and not about why they are moving. Stock market winners only care about direction and duration, while market losers are obsessed with the whys.
5. Don’t take heavy time to do the business: If you wait to invest until it is totally clear to you what is stock or where the market is moving, you have to assume that others have done the same thing and you may be too late. You need to get positioned before the largest directional trend move takes place.

TOWARDS 20,000 POINTS IN BSE

In last week, the sensex and nifty competite in moving downward. But,in the end of the last week it makes a front footed move and regain the 30% of the lossed points. No, problem it will excpected to the stability at the end of this week.

Note: This blog is created to give so many tips and training in sharemarket. we are in process to do the best for you. So keep visiting our site http://www.moneymadurai.blogspot.com/