Trading in shares of different companies presents a unique opportunity to make money within a short time. But there are some important points, which have to be considered before start trading in these shares.
1. Research about the company before buying a share
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A thorough research is required to be carried out before you actually buy shares of a particular company. This research should be based on such aspects as Reputation of the company, Market share, Financial Results etc. For this information, you can depend on various Financial Newspapers, Magazines and Websites.
2. Identify External Factors that could affect the price of the Share
The price of a share depends on the demand for a particular share and it fluctuates daily. There are many external factors, which can decrease the demand for shares, such as Political Instability, Scams, News about wars, Financial results etc., thus resulting in a reduced price for that share. Be alert for any news that are directly associated with the company such as merger, acquisitions, change in Top Management etc.
3. Take Right Decisions at the Right Time
Timely decision is the key to success in Share Market. Your decision to buy a share should not come as a result of an impulse. Impulsive buying most of the time results in loss making. Wait for the right time to get the share at a price which you thing is appropriate. Make a deep research on the company before you buy its shares.
For more details regarding trading in shares visit Guide to Share Investment
How to Make Money By Trading Shares
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