Factors that decide the share market index .

hi

well we all know share price falls or goes high
have we ever thought what all factors decide the price of a share ?
most positively, we would have but wouldnt have known fully

here are some tips for trading shares for some beginners who may lose consecutively since they may not know the market analysis, the facts that determine the share market growth or fall are

1. The global economy decides the share market sensex ( index points )
eg: when the currency exchange for indian rupee goes below, indian share market falls down
that is because of the effect of global economy

2. Natural calamities
eg: when earthquake strikes gujarat, share market index points goes down rapidly
also when there is earthquake in indonesia, still our indian share market has its consequences, it falls down

3. Politics
Not only politics plays a role in country economy, but also in share market
analysis shows that the change of political party, ruling or opposite may have a drastic effect on the share market

4. Gold market
As the gold value rises share values go down, exceptionally this ( month of december year of 2005 ) , gold market and share market are rising together

The most important thing with the gold market rise and share market rise, india is now a developing country and in its full fledge of development. So the value of all products within the country is rapidly rising. We have seen a sudden rise in real estate, gold and now in shares. This could be due to foreign investors, who would like to put a capital and gain twice or thrice of it. So the status of a country will be the main reason to decide the share market.


it is advisable for the beginners to avoid trading at the peak of the bull period, since at any time it may fall to the drastic bottom of the market.
to share in bear period is very dangerous without knowing "market analysis"

in the following posts we will see the best easy way to earn and what is called " SEASONAL EARNINGS "

Dont miss this traders !

hi

A trader usually has to pass through three stages

1.Every trader loses initially :

Every investor who comes for trading initially gives losses as he/she is unable to have control over his greed and fear. At times with all the information and luck in his favour, he makes profit, and then because of his new over confidence, trades more which results in his profit gone and also sometimes a portion of his capital gone, This cycle of fear of the losses and greed to earn more makes him initially give losses.

2.No profit and No loss :

Out of the total investors who enter the first stage, 80% of them finish off at the first stage only and after an year or two find that the stock market is not their cup of tea. So in the 2nd stage only the 20% investors try to break even in their trading and quite a lot of them are able to have control over their fear and greed with a result that they stop giving losses. Now these traders are ready for the 3rd stage.

3.Making profits :

This stage where a trader makes consistent profit i.e. he does not give loss cheque to the broker. In fact this is the stage which everyone wishes to have in the stock market. But anybody who wishes to come to the 3 rd Stage has to pass through the above 2 stages.

know which stage you are and try to make to the stage 3

all the best