Sunday, September 26, 2010
There are two kind of person,who , operate in the stock market. One with little or no experience but lot of expectation and no strategy and other with experience gained through knowledge and self correction over years. It is a wise saying in the stock trading community that at the end of the day both exchange their assets and go home. With former gaining or learning a meaningful lesson with the expense of his money and later taking the money for his experience and expertise.
So, how can a newbie in the stock market reduce his learning curve and make it more steeper ? How a normal and small investor could make a consistent gain without fear of losing his capital ? How much a investor should invest, what should be his risk profile, depending on it where should he put his money--- I will try to answer these generic questions in my articles here on this blog so explore it and try to whet your skills of investing with additional insight.
Before jumping into the ring, you must know your risk profile. Each person has unique environment and responsibilities. so, risk profile is also unique to individuals. Personal risk tolerance may be quite different for different genders. Men are generally comfortable with high risk handling but with additional responsibilities of their family their risk profile changes to less riskier. There are several factors, which determine one's risk profile, such as :
2. Current level of income and asset
3. knowledge and experience
4. Family situation
5. Major future events
All of these factors determine your risk profile. All these above factors can be summarize in on line " How much you can afford to lose at this point of time? "
Will it change the your living condition if you lose all of it?
If you want to measure your accurate RISK PROFILE free of cost ,click on the link. It will take around 30 minute to answer all the question and it is worth while.
Now i know my risk profile ? what next.....
The next step is familiarization of some basic financial terms. I will suggest you to visit NSE (National Stock Exchange ) website and explore as much as you can. For basic understanding of Indian financial market READ THIS.