subject: Factors And Risks Involved In Investing And Nse Bse [print this page] A stock may be either over priced or under priced; the NSE BSE market can be either bearish or bullish. Furthermore, there are hidden and unknown factors as well that act as a hindrance for many to determine the trends as well as finding the practical value of any stock in India. With fundamental analysis, you can find out the value of stocks while with stock technical analysis, you can find out whether the market will be bearish or bullish. Trading softwares are also available in the market utilizing which you can also come close to the predictions. As a novice investor, you may not be able to use the software with precision, but you will learn with time. Other factors to be considered are reading all latest NSE BSE market news that matter to you. Besides, you will have to create goals and strategies in sync to your trading objectives.
Have you ever delved on your ability to take risk? Taking risks and managing it depends on your experience as well as your approach towards returns on a particular share in India. It is recommended to start the small way if you are novice investors. The more experience you gain, the greater is your ability to take risks. Investing big in any share in India or a number of shares will then involve lesser risks because you will well know how to manage it. The risk appetite again varies from person to person. Do not think that trading in shares listed in the NSE of India involves lesser risks than those listed in the BSE of India. It all depends on the volatility of the market and swimming against the tide again depends on how knowledgeable and updated you are about the NSE BSE market.
The Mumbai based NSE of India is the largest stock exchange in the country in terms of the number of trades related to equities and derivative trading and daily turnover. Besides being the third largest bourse in the world in terms of the number of trades in equities and second largest in South Asia, the NSE of India has witnessed a record growth of 16.6%.
The Dalal Street, Mumbai based BSE of India, considered the oldest stock exchange in Asia, happens to be the only bourse in the world with the largest number of listed companies. As per August 2010 records, around 4990 companies were listed in the BSE of India. This bourse holds a top place in the world map eleventh largest in the world and fourth largest in terms of equity market capitalization of the listed companies. It is not only one particular stock in India listed in this bourse that you may choose to invest; you may spread your money and invest both for the long term and short term. For long term investment of a stock in India, consider blue chip companies that have maintained a consistent growth record over the years.
by: Nirmal Kumar
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