Why diversification is important while investing

There is an old saying “Don’t put all your eggs in one Basket’ and this holds true even with respect to stock market and personal finance.Diversification is a basic rule which needs to be followed during investing.Diversification here means investing your money in different instruments and minimizing your risks. All those instruments might not be related to stock market.

For example…Investing some of your money in gold,investing some of your money to buy some property, and putting rest of it in the stock market.So even if one of the option do not work well,you will atleast have other things.

instruments for diversifying your investments

Some of the instruments for diversifying your investments

Now the question is how should you allot your money.That needs to be carefully thought over by you considering your risk profile.

Diversification in your stock portfolio helps you in protecting your money against the market fluctuation Continue reading

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Warren Buffet

Chances are that you must have heard this name before and if you have not then you must get to know about this person.

Warren Buffet is an American investor and is among the richest person in the world. He is one of the most successful investors and is considered as a legend. Warren Buffet made all the fortune over the years just by investing in the stock market.

Warren Buffet

Warren Buffet

In Warren Buffet’s own words “The basic ideas of investing are to look at stocks as business, use the market’s fluctuations to your advantage, and seek a margin of safety.”

Buffet always looked at the basics first while investing in the Businesses and did not invest to make a quick buck.I’ll advise you to read more about Warren Buffet so that you can get to know about his investment style which is based on some very basic rules. You can get a detailed info about him at http://en.wikipedia.org/wiki/Warren_Buffett

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What is IntraDay Trading

Intraday trading as the name suggests refers to the trading system where you have to square-off your trade on the same day.Squaring off the trade means that you have to do the buy and sell or sell and buy transaction on the same day before the market close.Intraday Trading is also referred to as Day trading by many traders.

Lets explain Intraday trading with an example.

Suppose that you have bought 100 stocks of ABC limited during the open market hours,then you have to sell the same no. of stocks of ABC limited before market closure.Same is the case if you have sold the stocks,you have to buy the same quantity of the stock you have sold earlier. Continue reading

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