In the current scenario of the markets and finance world, people are coming up with lots of ideas and plans to decide when and when not to invest in the markets, when to buy the shares and when to sell them off.
Many of the ideas do work but in majority of the cases, they fail and when a newbie in this risky world tries to follow the "ideas" and simply "crashes" out in the markets and come across failure.
There are two concepts going around which are in fact the advanced concepts of the Markets.
1.
Decoupling 2.
Range-Bound Markets.
We will see what are range bound markets? Range bound Markets is a terminology which belongs to the realm of technical analysis of a particular share or company in a day in which a share has a lower side price and a higher side price.
In the techie terms they call it as a support at the bottom price and resistance on the higher side levels of a share price which is thought of by the "experts".
In short Range bounding is another dubious way of trying to time the market.
Markets are never as the techies try to manipulate and are totally dependent on the companies enrolled under Sebi, more rather the sensex is more dependent on the top company profile and work and popularity...
otherwise its a nig game approach where you can earn good profit but then you have to know each and every company's story when you wish to do day trading.
Even if the Market is showing so many ups and downs totay, still a person who has started investing in the markets way back since 15-20 years is even today is a lot of profits.
There was a time when the price of an RIL share was 1 Re.
something or may be it was 10 rs.
today it is 1400 rs and has gone to a high of 3200+.
So we can see here, that a share that had been 1 re.
has gone 3200 times higher.
So a person who must have bought a 100 RIL shares @ re.
1 now has 1400 * 100 = 140000 thats 1 lakh 40 thousand rs.
as the valuation of his 100 shares which he had bought for a mere rs.
100.
This shows that long term investment is the most correct way of investing and earning profit in the Sharemarket.
However ups and downs we see daily, and unless we are not day traders, we are going to be in profit 10 years from now if you start investing in shares today.
So whats the best mode of investment today.
The persons who are very keen in having a details knowledge of the share market can themselves get registered with a broker/subbroker and then can start investing in the sharemarket.
Another a little peaceful way exists for those who do not have time to get into detailed knowledge of the market - Mutual Funds.
The fund company manages in which company to put money and in which to not.
You just have to decide which fund you want to opt for..
..
And this is any time a golden block.
The more we invest the more is a chance that to earn better returns.
And it is always noted that Mutual funds.