Investing in shares .Good or bad !

@sarojInc (570)
India
August 11, 2009 2:57am CST
Will you invest your money in the Good companies-(stock market)? I have been watching the stock market for more than a year.I have seen it from very close .The making of fortune is really good thing and loosing it all and starting it from scratch is also not impossible. What will you do if you have excessive cash ? Will you invest it in shares or do you invest it somewhere else ?
3 people like this
26 responses
@akuler (3539)
• Malaysia
11 Aug 09
Hi sarojInc, If I have a lot of extra cash, I prefer to invested it in property market. The price of property is hardly going down especially land. Some might make you a millionaire if your land suddenly become a hotspot for a new development. Share market is a bit risky but the return is big too. You have to learn and have a good knowledge technically and fundamentally of that market. You have to always being updated with a latest news. It is very difficult to do it especially when the economic situation is not very good. Sometimes you need the inside sources to earn a lot. Good luck and have a nice day.
2 people like this
@sarojInc (570)
• India
11 Aug 09
That really correct.Property is a good option when you compare it with stock market.As property mostly appreciates,the risk is certainly negligible. happy mylotting
2 people like this
@akuler (3539)
• Malaysia
11 Aug 09
It is also impossible to lost it unless someone in the district office play foul about it. That is a good thing about it.
1 person likes this
@vingyan06 (2489)
• Malaysia
11 Aug 09
me too think that invest in property is better than invest in share market. But of course investing in property will need a big capital, I hope I am telling the correct fact. As for me, I only use my extra money to invest some unit trust. The risk is not as high as the share market and again of course the return is not going too big compare to share market.
@vandana7 (67521)
• India
11 Aug 09
Hi SarojInc, I think some part of cash should be invested in shares. This is because fixed interest bearing securities like government bonds, cannot keep pace with inflation. The interest that comes from this steadily loses purchasing power or value each year, eventually making it inadequate to meet expenses. At that point of time, we do need something that can replenish this and give us the same standard of living if not better. Even medical expenses keep increasing at a rate higher than inflation on grocery and cosmetic bills. One way to do it is to buy some real estate properties, which do fetch rentals which increase with time and offset inflation. The disadvantages of this class of asset are that they are not very liquid, and they require huge investment. Agreed there are heavy risks in stock market. It is certainly not a place for novices. Even the television channels show contradictory views. But there are simple rules as well. If the investor remembers that fools rush where angels fear to tread, everything will be fine. Buying good stocks when there is a bad performance report is one way to make monies. The stock will invariably regain its position and leave the investor with some profits. If the stock is bought at a higher level, then purchasing some more of the same stock at lower levels will help in reducing the purchase price of the stocks as average cost per share comes down. Another blind strategy is every time the market slips by 5 to 10 percent in one day go shopping. These opportunities are rare, but they offer excellent opportunity to make money. I believe one third of savings should be invested in stocks. There will be losses, but in the long term, the impact of such losses becomes negligible.
• India
11 Aug 09
Investing in shares in not bad but being an aggresive investor is very bad. My cousin is one. He is in to the share trading for the past ten years. He has never earned anything worthwhile. Instead he has spent most of savings rather lost money in this share gamble. We have tried all methods to stop him from investing and his crazy interest in share market. But all in vain. He says he will make money one day. Now he does not have any proper investment for future but still does share trading. Don't you think this is bad for him and his family. Share trading can be done when you have surplus funds as you have said. It can be a type of investments with high risk and good returns at times. You should not stake your entire fortune. But one should take into account his risk tolerance before he invests in stock markets.
1 person likes this
@divkris (1163)
• India
11 Aug 09
Oh! i feel sad for your cousin's family. i think people should realize that it is not their cup of tea and move on to another area or feild that can keep them financially sound!
1 person likes this
@kiran8 (15380)
• Mangalore, India
12 Aug 09
Hi saroj, Getting into market at this time is not advisable since the prices have gone up a lot.The trick is to be able to sell while the stocks have gone up and buy back when the prices fall considerably and you make a profit. I invested in Satyam stocks at price Rs 47, 2 months ago and today it is trading at 100 +, just goes to show the kind of profit one can make with stocks and in such a short period of time. But it is advisable to buy when the prices come down and wait for them to pick up considerably before you plan to sell.Unless you sell when they go up and buy back when the prices come down, you will never be able to get the best benefit for your money...
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@vijayanths (7878)
• India
12 Aug 09
It is good undoubtedly. It gives you more returns than the bank interest. You need to wait for longer periods if you invest on real estate. If you know the tricks of the trade you can earn good income consistently from shares. You can also invest a portion of your savings on commodity trading and forex.
1 person likes this
• Malaysia
12 Aug 09
yes, if you got spare cash, then you should invest some in shares. now is a good time to enter the market, there are still a lots of good opportunity in share market. but i will advice you to go long term, like keep the shares for 3 to 5 years. If you are really got free time to monitor the market daily or hourly, then you can go short term. anytime is a good time to enter the market, now even better (provided you go long term).
1 person likes this
• India
12 Aug 09
Waiting for the right time and investing periodically will give you a good opportunity to explore the share market. An investor who enter(by buying) and exit (by selling) at the right time is the winner. This Right Time is determined by various factors that affects the stock market. Patience and decision making at the right time give you good returns.
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• India
11 Aug 09
Investing in shares is not abad things but you have to control yourself not much more enough...if it crossed then it is harmful..not good...
1 person likes this
• China
11 Aug 09
I did not invest in stocks,there is a risk of this kind of thing,and if I have a lot of thing,and if I have a lot of money,I will invest in real estate or to do some business,do some more secure.
@kalav56 (11502)
• India
11 Aug 09
I have been in the market for 20 years, have seen ups and downs but would never leave the market.I am fortunate to have been blessed with a chartered accountant husband with whom I have interacted and have had plenty of personal experience also .I have writtena small article here ; You may read it if you find time. http://www.associatedcontent.com/article/801123/is_the_stock_market_a_gold_mine_or.html?cat=3 You cannot jump into the market straightaway on hearsay.It is a big learning process and you ought to have a mindset for it.
1 person likes this
11 Aug 09
I will invest my money in the companies that are doing well on the stock market. If I have excessive cash, I would probably put half of it towards buying stocks and the rest in savings bonds or some kind of safe investments to ensure that I won't go broke if the stock of the company I invested in went down.
1 person likes this
@varunsdo (204)
• India
11 Aug 09
If you have knowledge then you may safely invest. I too wanted to invest when Satyam had a scope, but neither I had demat nor money. At the same time my friend invested for a short term and was in profit. So if you are really observing the market closely and have calculated expectations from some companies then Good luck! Go for it.
• India
11 Aug 09
i think if u know how to tackle this gamble then it can be a intresting way to earn money coz the share market is actually fake.. all the values of shares are valued on the basis of its goodwill n future plans but not on the actual plans. n this market is mainly controlled by big players of the market who have big n big holdings of share. so an individual can earn money by having patience n keeping eye regularly on the market.. most of the people says that share market is a total gamble but i think all the businesses are gamble n even ur life is also like gamble coz u don't know when u can die... ha ha...
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@ynloop (14)
• China
11 Aug 09
invest my online earnings in that forex.
1 person likes this
• India
11 Aug 09
I don’t think its very safe for the middle-class to invest in shares. But what to do, the way the govt is reducing the rates of interest, it seems they are forcing the common man to put his hard-worked money to risk, maybe to please the industry bigwigs. I have never invested in shares mainly coz while growing up, I say my dad invest in shares with mixed fortune. He lost quite a tidy sum on a few shares but earned equally well in others…but those were the days when money was more its worth and interest in banks and post offices were quite high. But now money is so costly, whatever we are saving doesn’t seem to be enough, so no way I am going to gamble that away. I might win a fortune…I might lose all my savings! Yes, if I had extra money to spare, then maybe I would have invested that in the stock markets just to test the waters.
1 person likes this
• China
11 Aug 09
hehe...it's a great risk to invest in shares in current society. but i do have invested some in. i joined when the index reached almost the peak here, . so certainly i have lost some money. but now, i almost get it back again.
1 person likes this
@divkris (1163)
• India
11 Aug 09
Depends on which type of shares you invest and whether it is long term or short term investment. I would say long term investment is safer but short term investments like day trading is quicker way of earning profits. So, i'm not against investing money in shares but i would advice people to be very careful and shrewd. If i had excess money i would rather invest it on gold or buy a plot/house. These are investments that do not have high risk involved as the market value for these only go high and does not fluctuate as bad as the shares and equities
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• India
11 Aug 09
I cant say exactly but if u have confidence on u and u can stand when it is low or Up u will be stable.....
1 person likes this
@meapas (2434)
• India
11 Aug 09
I am waiting to invest my online earnings in that. Local and forex.
@Informer (803)
• India
11 Aug 09
Hi Saroj, I believe risk is involved in every aspect of life than why not go for stocks and shares directly but always remember, knowledge rules. So, get yourself loaded with market knowledge and and patience.
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