People come into share market with heavenly dreams of minting money.
Some of them are academically sound in any line - doctors, engineers, great professionals/teachers/auditors/advocates/and very many.
But actually there is no basic qualification required as such to trade/invest in a share market .
Knowledge of technical analysis, fundamental analysis helps to some extent. Some one jokingly said 'Finance minister's press meet' news update - analysis is also a needed.
But many people trade solely with the updated news, Singapore Nifty trend, US markets futures trend, Foreign institutional investors' bought /sold positions along with other Asian/European Markets trading trends.
Will this do?
No, not at all. For investors in share market, knowledge about the company in which they are going to invest or purchase shares is sufficient. Even then he should enter the share in the right time and exit at the right time.
For the traders, they have to know much more. Trading in shares is different from trading in futures and options. In 'futures', one need to have heavy capital. In 'options buying' limited capital will do.
Before writing much more about share market, I want to end this blog giving and example of a LAKHPATHY opportunity:
On one weekly option expiry day, the market was very very volatile. Bank nifty' put option ' which was trading at 0.90 paise at about 3.00p.m raised to the level of Rs.90/- within five minutes, that is
one lot size 20 bought at 0.90[Rs.18/-] became
Rs.1800/- within 5 to 10 minutes.
Thus born new lakhpathys and crorepathys. But this knowledge is not so easy to pick. It needs tremendous follow ups, patience, and experience. Watch the market everyday and gain knowledge like a 'HAWK'