Monday 6 June 2011

Keeping An Eye On The Share Prices In Your Portfolio

By Paul Bennett


Share prices have been offering nice returns on investments for a long time. Some individuals could argue that great losses are incurred by an investor when the market crashes but what they have no idea is that individuals who had incurred losses have been gamblers and not investors. Funding in stock market requires some abilities, a little luck and lot of persistence and once an individual has all these three ingredients in correct proportion he's certain to have a superb run in the stock market.

Investment portfolio of a person contains many instruments and a good proportion comes from an investment in shares. To get assured and low risk returns, investment in the shares of blue chip companies is the best way. Investment in stock markets can be done in two ways:

Direct participation

- Investment through portfolio management companies

Both the above ways have their own benefits and disadvantages but whichever way you invest it's essential to always maintain a track of share prices so that you simply all the time know the place you stand. Watching share prices closely at all times allows you to take fast decisions to get good returns.

Traders in stock markets are of two types:

- Short term investors

Buy and hold

Whichever way you do it a close watch on share prices is essential to maintain your portfolio in good condition. The frequency of watching may be much less in case you are a long term investor but the short time period investor has to observe the prices all through the trading session. A short term dealer takes advantage of turnover whereas long run investor good points through margins.

As soon as an investor has entered the stock market it is rather vital that he ought to take out some time from his busy schedule to review market trends of other countries which can assist him in deciding on future strategies. Top-of-the-line ways of improving your portfolio is to spend a while in searching for the companies which were performing well in the past but their share prices are either going down or have been stationary for fairly some time. Shares of such firms are sure to increase because stock market always rewards good and consistently performing companies. There are two golden guidelines that one must follow when he's investing in stocks. A good portfolio should contain stock from all sectors of economy. Mortgage money should by no means be used in building portfolio through stocks.




About the Author:



No comments: