HAVE YOU CONSIDERED SHORT TERM INVESTMENTS?
Most people who get into the share market have a long-term plan in place, and intend to work with the markets for years if not decades, in order to achieve their goals by the time they are ready to retire. However some people do not have the time or the patience for that. They may not be as well publicised, but there are short-term investment techniques too.
WHY IS SHORT TERM INVESTMENT IN THE SHARE MARKET IN INDIA LESS PUBLICISED?
One of the reasons may be because of the high risk associated with short term investment. If you are limiting yourself to a short time frame (possibly less than a year) then you may deprive yourself of the possibility of waiting for shares to recover after a drop in value. All sorts of factors can cause shares to dip, and it sometimes takes a long time for them to recover. When you don’t have time to wait, it may be more of a case of offloading the devalued shares quickly to limit your losses. There is also the fact that you may not see much action over a small period, meaning that the gains are so insignificant that they may not be worth the effort.
HOW TO INVEST SHORT-TERM IN THE INDIAN SHARE MARKET
There are people who can and have benefited from short-term activities in the share market. Some people like this kind of investment and enjoy the challenges. In fact there are many people who like to participate in Intra-Day trading. These trades are so short-term that the share are bought and sold within a single day. Typically the prices usually change little in such a short time, so profits are very small for this kind of trading. If significant quantities are bought and sold, then a little profit on each share does add up to a significant amount. The risk of losses must always be considered, as they can add up in exactly the same way over a large quantity of shares. Another thing to consider when doing intra-day trading is that you will be likely to make one or more trades daily. Over the course of a month, this will add up to a significant number of trades. If your broker is charging you a fee ‘per-trade’ then the fees will also add up to a significant account when the monthly fees are billed. You should talk to your broker and make sure you understand the charges and fees that you will be obliged to pay them.
EXPERT ADVICE AND CAREFUL RESEARCH IS THE KEY
As always, with any form of investment, regardless of whether it be long or short-term, you should not go blindly investing without careful research. Some brokerage companies such as GOODWILL INDIA do a lot of the research for their customers and publish it in their customer new bulletins totally free of charge. There are so many benefits to being a GOODWILL INDIA customer. Check out their website at www.gwcindia.in to see the full list. For expert advice in investing in the share market in India, whether it be long or short term, you can always count on GOODWILL INDIA’s customer service advisors to give you the best personalised advice to help you make informed decisions about what to do with your money. The options are endless. +91 80122 78000 is the only number you need to put your curious mind at ease.