The questions that arise in the mind of a new investor depend upon the level of one's general knowledge and what one expects from the market.
The fact that one has chosen this mode of investment of funds implies that one has made some preliminary studies.
The important motive of an investor is to make as much as profits, as quickly as possible.
Some of the investor's questions and their possible solutions are: What points needs to be noted to make the entry in the share market profitable? Answer: You need to plan your entry.
Read literature related to stock exchange and investments and try to understand the elementary rules.
Profits demand expertise, which comes out of experience.
Know the level of liquidity that you are prepared to invest in shares.
A wrong move may lead to wiping out of the entire capital.
Never overtrade; play within the limitations.
Keep proper records of profits and losses.
Understand what brought you to losses and do not repeat the same mistake again.
The twin virtues of share trading are discipline and patience.
Today's successful trader had been a regular loser, not long ago.
Overtrading has never been a virtue with any level of trader.
Just shun it.
Share exchange is a business challenge.
Treat it accordingly.
As a beginner, do not invest the entire liquidity in one or two companies.
You may acquire such expertise after years and years of trading experience.
Market will not behave according to your wishes or fond calculations.
You have to follow the trends of the market, without asking why? Several factors, simultaneously tell upon the price of a share.
Give due credence to the news circulating in the market, not undue credit! Do not invest on the basis hyper-activity in the market relating to a particular share.
Searching for the top and the bottom of a share is mostly a futile exercise.
Go with the trends and earn well in time.
Take the entry and the exit correctly.
In between this interval, lies your profit.
Your money is at stake, calculate and invest, without being influenced by the observations of all and sundry.
They are entitled to their opinions; you are entitled to yours.
A clear-cut stop loss limit is essential before buying and selling.
Make the entry at the correct time, after consulting a broker.
In the initial stages, availing such services is a must.
It will you save you from lots of hassles.
Have realistic expectations from the market.
As a new entrant, avoid intraday trading.
Do not gloat over your profits and worry over the opportunities lost.
Market throws hundreds of opportunities every day.
Only you need to be at the right spot, at the right time.
Never borrow for the sake of trading.
Be mentally prepared to lose the money that you have earmarked for the stock exchange.
Can any outside force manipulate the market: Here, one should know what the fundamental analysis and technical analysis are about? The former takes care of the long term valuations, and the latter relates to the short-term movements.
Short-term movements are quite volatile, and no fixed reasons can be attributed to such movements.
Are they due to manipulation or fear? It can not be either or it can be both, depending upon a particular share and particular circumstances.
This is mainly a guessing game.
Before venturing on the actual foray in the share market, better start with paper trading.
With no real money involved, assume that you have bought and sold the shares.
At the end of the day, arrive at the final result whether you have ended in making profit or loss.
Trace the reasons for the loss, and do not commit the same mistakes, the next day.
On the second day, you might commit fresh mistakes.
Paper trading for a month or so, will give you lots of confidence to do the real trading.
Declining market is known as the Bear Market.
Bull Market refers to the rising market.
A new investor must try to learn as much of the market conditions as is possible, so that the entry is done at the right time.
The clarifications given above must answer some of the important questions that arise in the mind of a new investor.