Is share trading a good way to make money?

Answers:4   |   LastUpdateAt:2012-09-29 18:23:02  

Asked at 2012-08-03 14:03:02
Hi there!!

Q1. I am curious to know if share trading (any kind) a good way to make money. particularly am talking abt intraday.

Q2.. i mean if u invest in a big company's share like Tata motors and even if it goes up only 5 points per day or say 20 points on an average everyday or sometimes it goes 30 points and sometimes 10 points during a year. it means a yearly return of 20% on the money and that's not bad. Your advice on this...........

Q3. Am thinking of investing in only the big companies, cos in these according to what i know.

The money only gets stuck when the market is down or the share is down but whenever the share goes up your money will be recovered and u will start making profits and it will definately go up sooner or later.

so what i understand, money is not lost. either it grows when the share goes up or it just gets stuck and whenever the share goes up the money is retrieved plus the profit.

Q4. what abt short selling. i have heard when the market is going down then u can do short selling. what u say abt this.

Thank you for your knowledge

have a nice day!!
Answer1P-DubAnswered at 2012-08-17 03:19:05
This is if you really know what you are doing , you can trade without emotion and have a high tolerance for risk. You definitely need to learn more about him and " paper trading " at least 6 months to a year before considering direct trade.
Answer2zodwaAnswered at 2012-08-25 06:56:03
2 - You are assuming that a company infinitely rise in share value , and that is simply not the case . The market has become something like a 10 % average in their history , but have been very bad and very good points along the road . For example , a person who put their money in a fund DOW in 2007 , has not yet made ‚Äč‚Äčtheir money to this day , and if you put your money in the market in 1960 , 20 years later, in 1980 , it was not until 20% , but if you put the money in the voice market in 1990 , although there were some bumps in the 2000s , is still enormous until 2010 . MedlinePlus MedlinePlus
Answer3HaikuAnswered at 2012-09-02 22:11:03
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Answer4lachaunciaAnswered at 2012-09-29 18:23:02
3 - There are several points, and I will try all MedlinePlus MedlinePlus 1. Investing in large companies-These are usually safe, and sometimes pays dividends, and are very liquid, as they usually have large volumes. The problem is that in the short term, there is a tremendous setback for them as they have little risk. The higher price and are at higher risk emerging markets and low-and mid-cap emerging companies. MedlinePlus MedlinePlus 2. Your assumption that the money is not "lost" until the stock is sold, it is absolutely true. However, once again take on what floor you have to climb, and that's not neccessarily the case. Take, for example BAC. It was at $ 53 per share in late 2006, is now at $ 11.45. Seriously, what do you think the chances are he recovers BAC stock price in the short term, or even at all? If it's a retirement account and you are 30 or 40 years to see if it does, is fine, but those who are not locked into long-term in this population and in similar positions, often take the loss due that the opportunity cost is too high.
MedlinePlus I think that the opportunity cost is something that you arent calculate or routing. Say dump $ 10,000 in a population of 10 dollars, and falls to $ 8, too, in his role reduced value of $ 2,000. You figure that's too big loss to take, and decide to wait for back up to $ 10. MedlinePlus MedlinePlus Well, why are you waiting, action B is trading for $ 3, and there are rumors that it will triple its revenue this quarter, and analysts expect the stock to rise to $ 5.50. So what would you rather do? Sit in a file and wait for it to recover, or take the loss on the chin, take action B, and take the gain of $ 2,500, which will net you $ 500? MedlinePlus MedlinePlus
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