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 "