Sunday, April 13, 2014

Information is main element for stocks traders.

If  bees know that people are watching their beehive and they are planning to make smoke and steal the honey they make, would they still be making honey without thinking anything else? They will sift to a secure location. Same thing happens with us. A simple information can be valuable for making a profitable trade in future. The value of information is so high that at times people even neglect the fundamentals and focus only one prevailing information. This might cause the dis-balance in the system. What ever the information is, we do not make profit on loses and we do not make money on poorly backed financial securities. The main focus always should be the information and it's validation.

Nepalese stock traders are all in the same track next to the international stock traders. Everyone is trying to make money from buying and selling. They purchase at high price and sell at low price. Sometimes all the factors that causes change in the stock price are seen and heard clearly. The vividness is bold and people know what is causing sudden spike and what's causing sudden depletion of the share price. A little and legal information can make you thousand in various cases. They are like gold mines and people are trying to utilize the information on the map to get the gold. Sometimes it helps to make profit of thousands and sometimes it puts traders in loses.

Let's say a trader is ready to be updated to the latest information about institutions he is targeting for trading stocks. What's next? Next move is the subscription of various articles, channel, newsletters,magazine and newspapers. These are the resources for finding information need for us. In Nepal we have, Arthik Abhiyan, Sharesansar, Nepal share market,mero lagani and many more. These sites provide information about various contemporary market situations. The use of these information determines whether to make profit or to stay doing nothing in the stocks market. The habit of reading financial medias is always a necessity for a trader in any scenario.

Now, a trader know about what's likely to happen. The next thing to do is to validate the information and predict the possible changes that is going to occur at certain time in future. If we know that two banks are going into merger then after merger their capital is merged and they operate as a single bank and this will increase the price of the stock of the bank. So, information is vital for stocks traders.

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