SHARETIPSINFO >> Articles Directory >>Investor and Inside the mind of Investors while trading
An investor is any party or an individual who makes or puts an investment. The term has created a specific meaning in finance. It briefly explains the particular type of people and companies that purchases equity or dept securities to gain financially in exchange for funding an expanding company in a regular interval. It can be also called the medium to long term investment and it looks for a percentage return on its capital outlay be it either shares or property investment in the stock market. The main concern to the investor is the dividend return that the company pays.
Stock Selection Criteria
The investor sees no cause to sell if the current price of the assets declines but the cash being generated has remained constant or much the same. When there is a downturn, a trader seeing the downturn exits the trade either taking a smaller profit or a small loss. Whereas the investors believes that his stock selection criteria were correct and hopes that the market will reverse, thus he hangs on. But a smart investor checks out such drawbacks which are very less in numbers.
Types Of Investors
Now let us see some of the types of investors. The types of investors are:
*Individual investor-This includes trusts on behalf of individuals and umbrella companies formed for two or more to pool investment funds.
*Collectors of art, antiques and other things of value
*Mutual funds, hedge funds and other funds, ownership of which may not be publicly traded (these funds typically pool money raised from their owner-subscribers to invest in securities)
*Angel investors, either individually or groups
*Investment trusts, including real estate investment trusts
*Venture capital funds which serve as investment collectives on behalf of individuals, companies, pension plans, insurance reserves or other funds.
When you make up your mind to invest in shares and stocks, then you should make a good study of the market. You should be familiar with the concepts of NSE, NASDAQ, BSE….etc. You can be a good investor only when you can know the present market scenario and for this you need a good guidance.
Inside The Mind of Investors
Did you ever think what goes inside the mind of investors when they invest in a particular stock market? Yes, the only thing that comes to their mind is how to get more benefits or profits from the investment that they have made. Well nobody would want to lose their cash in the stock market but they know that there is a risk involved in this type of investment. Yet they still go for it with the hope of reaping great benefits out of their investments.
Learn To Take Risks
The most important thing that you should do is to learn to take risks in your life. There is a feeling that one many sustain losses when investing in stocks is that it is stronger than one feels enjoying high rewards. It has been proved that people tend to remember better the negative feelings of losing their money investing in a stock market than the positive outcomes that is associated with making profits. So, it is very important that you learn to take risks. Not only this, but you should also be very careful as to when and how to take investment decisions so that you do not let your money go waste in any case. If you wish to learn more about the functioning of the stock market, then it is very important that you know concepts like BSE, NSE, NASDAQ…etc
Decide The Amount Of Investment
When you wish to invest in the Indian stock market, then you should always decide the amount of money that you going to invest in the market. This key of success is applicable to every young investors. Remember that in order to keep your invest amount constant, it is very important that you increase your investment. You should never make any changes in the amount of investment that you make.
You should also decide the date of the investment that you make. Invest on the same date every month if you wish to invest on a particular date. It is not recommended to change the date of investment. You should always stick to a particular date only. It is mandatory to keep all these important things inside the mind of investors if they want to get good returns from their investment.
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