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Stock market
by B.N.Rao on Dec 04, 2006 08:36 AM  Permalink 

Definitely stock market is not a gambling den. We should not believe the theory of high risk high return. We can always follow medium risk medium return strategy and earn reasonable returns from stock market in medium term. If you follow very short term strategy like 1-7 days you may lose or gain heavily. But that much risk is not advisable.
Buy at low index, sell at high index. People are not following this strategy and we can see big rise and big fall in the index.
If you see Dowjones index the variablity is less and expected profits or losses are less. It shows in U.S. the investors are matured and the market reached maturity level.
In India the variability in index is very high because the investors have not reached maturity levels. The expected profits or losses from Indian markets are very high. This situation is attracting FIIs to India and they are huge profits at the cost of retail investors. Investors should come out of their ignorance and should not get exploited in the market.

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