In order to earn profits from the secondary market, it is not necessary that the stock indices must go up, some investors have told Karobar National Economic Daily.
Many investors have lost their money in NEPSE that has been on downtrend since the past five years. But some investors, interviewed by the paper, have said they have been able to make profits despite the market showing bearish trend for a while now.
One must sell shares when the market is going down and buy in large numbers again when the market looks upbeat and there are less chances of a decline.
Investors who put in small amount of savings in the share market say that profits can be made even when the market is down, but the earnings may not be as high as when the market is upbeat.
Investing on shares of different companies reduces the risks and it is important to technically analyze the shares before buying and selling the shares, they advise.
They say investing all the money on the shares of one company results in losses for investors if the value of the shares goes down.
If small amounts of money are invested in different shares, investors might get earn less profit when market comes down, but they would not have to suffer losses.
Investors must keep abreast of the factors that affect share market. According to them, if investors wait for better earnings without understanding the market situation, they might have to bear losses.
Therefore, investors must diversify shares, keep track of developments that affect share market and have courage to sell shares when market condition warrants it, said one of the investors interviewed by Karobar.
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