The share market across the globe is generally prone to high degree of volatility. Volatility refers to the wild up moves and down moves over a short period. Due to this factor the investors and the traders might lose their capital if they don’t understand what their goals are.

Indian Market stock

Share trading in India is done through major two exchanges namely the National Stock Exchange (NSE) indicating NIFTY and the Bombay Stock Exchange (BSE) indicating SENSEX. All the other regional stock exchanges such as Ahmadabad, Madras, and Calcutta stock exchanges etc lack liquidity.

The myth about the Indian share market is that you would lose all your money or a vey greed question is that will the money double in a short period. The modest expectation of returns should be around 15 to 20% per annum compared to fixed deposit of only 9 to 10% per year. When you buy a company’s share say at Rs100 and after a few months its price is trading at Rs 120, you should try to book profit of 20%. If you are greedy and hope that it would further increase, on the contrary the price may come down to 90! So it’s better to book at least partial profit. If you are sure about that company’s fundamental and their top level management, you can keep the stock for years together which will turn to be a multi bagger like Infosys, Reliance industries, Tata steel, ITC, SBI, HDFC etc.

Define yourself whether an investor or trader:

Most people are not sure with this question of whether they are investors or traders. Investing is considered as buying a company’s share, holding it for a certain period in the anticipation that it may rise and then selling it at a higher rate. Most people now days are not patient enough to wait for months to see their profits. They love to make a quick buck and become day traders. Traders use the nifty live charts to predict the movement of the share market ahead. These charts give levels to enter into a trade and exit, but one cannot rely only on these charts because it is just a tool and you need to use this most effectively. Share trading in futures and options involves high risk and profit strategy, so be careful to enter this so called derivative segment. The advantage of trading in the share market India is that you can pay a margin of the total amount and take exposure for the full amount. So it is important to keep track of the live share market.


Wealth creation can be achieved only through investing in good companies at reasonable valuations. Never try to time the market by guessing when the bottom price would come. Instead investing regularly is a good idea. The Indian market, as an asset class, works well over the long term in the range of 5 to 10 years. One should make sure that their profile, financial ability is strong and capable before you decide to be an investor or trader.

Author's Bio: 

Dalal Street provides you Stocks and Shares, you can buy or invest in Financial Market with vj on dalal street.