Basics of Stock Markets

same with nokia, kotak cameras, reliance communication, reliance power, Yes bank, Vodphone

every company will go down to zero eventually, it may take 10 years or 100 years

Reasons

• Technological changes
• Bad managers
• Fraud
• Other reasons

Don’t ever think you’re part of company because you bought some shares, Shares are meant to buy and share, it’s just piece of people. You’re not company partner, you’ll get emotionally attached to company. which will create problems when selling comes.

If buyer’s are more desperate price will go higher, if sellers are more desperate price will go down

whatever value you see on chart is last traded price

Bid ask spread have to be 0 to transaction happen

BSE has low liquidity so only buy stocks from NSE

Before buying any stock always first make sure is that sectorial index is in uptrend.

Only focus on mid cap and small caps funds for investing, Blue chip funds don’t give that great returns, Blue chip funds are stocks where they have given great return in past

you’re not going to beat market by investing in blue chip stocks. Just invest in mutual funds for this.

Why Stock prices moves?