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Ignite the writer in you , write answer and get rewarded. Is India ready for simultaneous Lok Sabha and state assembly elections?

Sumil Yadav

Sales Manager... | Posted 08 Jun, 2018 | Finance

Is it worth to take risk in stock market?

Answers

Vasanthi Gopalan

I am a Graduate of 1980s, SEO, Retired teacher. blogger. | Posted 08 Jun, 2018

Well, this is an interesting question to search an answer. While the mastering of the share market trend will come only after some years of experience , we can analyze and understand the pros and cons of share market before entering into it.


Following are the factors which affect the equity markets :-


1. Volatility  of the share market is the main discouraging element while trading in stock market. Depending upon the market sentiments of current scenario, the stock market can crash on anything and everything. you cannot always pinpoint the reason for this volatility correctly and predict the market 100%. If it is bullish then well and good, but if it is bearish the jolt will be with us forever. On the other hand with experience we can at least sell or buy during these times. Because of volatility overnight one can become rich.


2. External market sentiments like political changeovers and natural calamities can also be the reason of crashing market other than financial and industrial problems. If there is elections, if there is flood or draught, if there is changes in interest rate or any other service charges levied by government ,even the war scenario will take stock market into toss .The market will definitely react according to the mood. But smart investors will always buy during the crashes because the market will definitely recover after the crash.


As a long term investment,  share market is worth to invest in, but we should take baby steps only till we master the trend and mood of the equity market. In digital India we have so many sites and experts in online to help us in share market. Moreover one can earn income from dividends also. There are so many choices of companies and online trading is easy nowadays compared to olden days. The choice is in our hand to choose the company. Fees are also very low. You can trade from anywhere.


So my point of view is, first start with less money , learn the ups and downs and increase the amount slowly to get good result. All the best.


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