In the profession of stock market, broker act as a doctor. Broker first diagnoses the investor and then gives some prescription to treat him.
The diagnoses process involves different levels.
Firstly, a broker has to know- what are your financial goals?
Then require knowing your risk tolerance power- how much you could tolerate risk?
And after that to find- how much you want to invest?
Smart people do not rely and depend on pension, because there is huge possibility in India of sudden change in the policies of the government.
For this you have to secure your self. This is exception- for those who have high risk tolerance power and can bear high risk with huge investment at the age of sixties.
But if you want to start investing it from the age of twenties and feel good and relax watching your money grow slowly then investing from now.
The whole game depends on your tolerance power.
Suppose the situation that the stock value goes down in which you have invested due to strike in the company.
In this situation, if you are a low risk tolerance man then your sell it immediately.
But if you are a high risk tolerance person then you do not sell your stock rather wait till the strike dissolve.
In both the cases you need a broker, who advice you for your investment. He will guide and tell you about different stocks and other investment categories in which you can invest.
Broker while suggesting you about an investment, keep in mind risk tolerance power of yours. So that it could be easy for you to choose and decide your best investment.
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