Basic Introduction to Commodity and Currency Trading

Stock trading and investing in stock is considered to be the best investment right now. Everyone is doing it. Our banks are offering us online trading accounts and urging us to invest in stocks. TV and newspapers are telling us no different. There are stories everywhere of how people have made lakhs and crores through stock market trading and by investing in the right stock at the right time.

All this make it seem super easy to make money off stock trading in India. It might be easy to invest in stock trading but there are certain things that need to keep in mind while doing so. If you’re just about to enter the game of Stock Market Trading in India or are thinking of online stock trading, here are some things that you should keep in minds while doing so.

1.  Warren Buffet, the world’s greatest investor has said, “Be fearful when others are greedy and be greedy when others are fearful.” This means that you should always join the crowd when it comes to stock. Generally buyers have a tendency to follow the herd, when it comes to purchasing new stock, but doing so can backfire easily in the long run.

2.  Research is key to good investment. Proper research should always be undertaken before investing in stocks. But that is rarely done. Investors generally go by the name of a company or the industry they belong to. This is, however, not the right way of putting one's money into the stock market.

3.  Always invest in companies and business that you understand. When you invest in stock you’re investing in that company. So understand properly how the company works and what it does and so on.

4.  Don’t try to predict market trends, an investor needs to cut market noise and concentrate on core fundamentals when selecting investment options. Another legendary investor, Peter Lynch says, "If you spend more than 13 minutes analyzing economic and market forecasts, you've wasted 10 minutes."

5.  Another piece of advice that Warren Buffet is known for is to buy a stock and forget about it for the next ten years. Stock market trading can make you a lot of money, but only if you give them time.  Even though Online Trading can be done in seconds it doesn’t mean you get returns in seconds too. Stock trading should always be done keeping in mind the long term returns.