Doctor copper, can no longer be viewed as a leading indicator, in fact, a name change might be in order. The investor must, therefore, employ the services of a registered stockbroker for buying or selling shares in a stock market. However, the brokers merely act as agents for their clients and deal with another class of stock exchange professionals known as jobbers. Too strict adherence to limits can result in an opportunity being missed, especially when the market is changing rapidly. Going by the share market basics such scrip should prove a good buy, provided you are patient enough.
Therefore, in a bull market it is advisable to avoid strict buying limits if you want to ensure a purchase, otherwise you could be trailing a share for days together without buying it. Similarly in a bear market it is wise to place selling orders at ‘market rates’. Of course, going by the basics of share market there are a few ground rules in this regard.
On the question of stock investment the most important knowledge beginners need to have about share market is how to select scrip worthy of investment. Therefore, going back to the share market basics the first step for stock investing is to identify an industry or industries with growth potential and to study the fundamentals of different scrip under that ‘industry-group’.
Understanding the stock market fundamentals is essential for a first timer when it comes to acquiring the crucial knowledge about – how to decide when to buy the shares. Once this phase has ended and the market has stabilized, start watching the movement of various equity indices from financial news papers. For this it requires understanding the stock market thoroughly with years of practical knowledge about share market investment. My other hub about how to make money in the stock market shows how ‘timing’ of purchase and sale plays a crucial role in making quick money from stock investment.
In a nutshell, investing in share market is not as complicated for the first timers as it sounds once they acquire the basic knowledge of how the stock market works. Understanding the stock market fundamentals and the essentials of investment in stocks discussed in this post, would eventually bring the process of buying and selling of shares within a methodical framework and it will take little or no time for you to know the ropes of the equity world about how to invest in stocks.