Friday, September 07, 2007

Should middle class invest in Stocks ?

The topic is of great significance as a large number of the population in a country belong to the group. I am from a middle class family . I have devoted myself to studing stocks,market for some years now .As some Market bulls or economist say that "do not invest in stocks if you do not have atleast 10 lakh rupees in your pocket with which you can take significant risks" to me ,I would say I do not buy this thinking.

There are some basic important rules which I would propose to when investing in to equity

Rule 1
Do not land up in a position that your bread and butter for tomorrow depends on the stock market sensex.

Rule 2
It is extremely important to do your homework per stock when investing .

Rule 3
Keep yourself away from companies which do not have a proven track record ,do not have a strong management,lacking future .

Rule 4
Stocks investment always helps when you invest for longer durations.If you are looking for fast money from stock, you have to do a lot of analysis and research to minimize risks.


neways if you use all the latest tools available and do your study right by reading articles related to stocks and market and you can understand answer to these questions like when is the right time to invest in a particular stock,when should I book profits, should I invest in a bull-run ? I think you should go ahead and make some attempts at investing and just be patient

Do not be afraid to invest , Be as technical as you can you will definitely make money

Happy investing