Investment in share Markets is a very serious business. People invest their hard earned money to get better returns.
It is necessary for every investor to study the markets very carefully before making any investments as the market trends can be very volatile.
It is recommended that investors should study and understand the live movement of Indian stocks. These live charts will not only provide them with all the share market news but also give them an idea regarding whether the scenario is conducive for investment in the share markets or not.
By observing the live charts of the share movements on television or online websites, an investor can certainly get a clear picture on the investment front.
Let us take an example of share market day trading.
If you plan to execute day trading and have received tips for certain stocks, you must observe their development charts closely.
On their charts, you will observe that there are two colored graphs i.e. green and red on the development charts.
If the opening of the stock shows a red colored graph and is against the recommendation list then it is inadvisable to trade in that stock as the stock price is on a decline.
It means that if the stock price is at Rs.800 but is expected to reach a target price of Rs.900 then it is inadvisable to buy that stock because it has a very remote chance of reaching its stipulated target price.
Similarly, if the opening of another stock is green in color and is mentioned in the recommendation list, then it is advisable to buy that stock.
If the stock price’s target rate is given as Rs. 100 and if the stock price for the day is Rs.80 as against its previous day’s closing of Rs. 75, it means that the stock has a greater chance of reaching its stipulated target price.
Also if a stock price shows no changes against its previous closing then it means that the stock has a remote chance of reaching its target prices. Normally, such stocks are to be avoided till any positive growth is noticed.
In such situations, if you are able to conduct a successful Indian stock market analysis, then you should buy the stocks which have a far greater chance to reach their target prices.
This is just a small explanation of how you can conduct a successful analysis. But remember this success heavily depends on many factors like political and disaster news, natural weather like monsoon and snow falls and festive occasions as well.
Once you start gaining more and more experience, you will gain more knowledge and thus be able to conduct successful online trading.
However, always remember to get the correct guidance from various experts before you decide to take a plunge in the deepness of the Indian stock markets.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Past performance of securities/instruments is not indicative of their future performance. This post is only for Educational purpose.