Title: How to earn money from the share market - The Economic Times
Headings: How to earn money from the share market
How to earn money from the share market
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How to earn money from the share market
By
Sunil Dhawan
, ET Online Last Updated: Aug 03, 2018, 12:29 PM IST
Synopsis
By investing in shares, one can earn either through capital appreciation, i.e., on the gains made on capital, or income in the form of dividends.
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Content: The world's greatest investor, Warren Buffett, was surely not wrong when he said, "Be fearful when others are greedy, and be greedy when others are fearful!" Keep emotion away
Keep emotional reasoning away while taking investing decisions in shares. Many investors have been losing money in stock markets due to their inability to control emotions, particularly fear and greed. In a bull market, the lure of quick wealth is difficult to resist, while in a bear market when prices crash, the fear takes over and investors sell even at huge losses. When to sell
At times, stock markets could remain flat for a long period, while at other times it can be extremely volatile. Your decision to exit should ideally not be based on short-term market movements rather on your stock selection. If there are no fundamental changes in your stocks, including its financials and businesses, stick to it. Risk is inherent while investing in stocks and hence, one should be able to stomach the risk of seeing the share price slide down considerably. Keep some portion of cash in hand to make use of market opportunities. If your stock has performed well, booking profits may not be bad idea.