It is important that as a trader one understands the implications of trading in stock market as knowing the risks means that one can undertake the efforts to mitigate the same.
It is no doubt that the returns from stock market is fantastic and can beat any kind of returns. Have a look at the returns generated by stock market for investors.
Infosys rose from Rs 45 level to Rs 20000 in Year 2001-2002 and helped us become a Crorepati with our long term investment and thus it is aptly said that a correct stock can make you a multi millionaire and for that you must check our delivery stock tips which performs and delivers more than what we promise by holding for a shorter period of time.
A large number of stocks have delivered more than 100% in 3 years and 200% in the 5 years, however one has to also see the risks associated with stock market trading.
Risks Stock Market Trading
A stock can even go down by more 45-90% in 3-6 months depending upon the sector and the company related issues. You can check out stock options trading risks here. Examples of the stocks which have gone down due to management issues and corruption scandals are as elaborated below:
- Unitech during 2008 crash
- Lanco Infratech
- KS Oils.
- JP Associates.
- Satyam scam
Thus the rewards are high but all those who do not have any risk taking ability should avoid investing in the stock market. Preferably you should start with cash in stock market which you will not be requiring in near future and avoid borrowing any money for investing in the stock market. However one can offset all risk of stock market trading by going with sure shot intraday tips which performs irrespective of the condition in the market.