The truth about share markets

1. The movement in share prices are not random.
2. Herd mentality is as much evident in the share market as in any other human endeavor.
3. Share prices reflect the true value of a company. Wrong. They never reflect the true value of the company. It reflects what the stock brokers think it should reflect.
4. The share prices can go down or go up due to any reason whatsoever.
5. The share values will go down. Only then will the price come up and some one will make money.
6. All market rallies are driven by lay people who think that they can make quick money when the market is bullish.
7. You can never time the market. So, if you think you can sell when the share price will hit the peak, forget it.
8. How many people do you know who play in share market and are rich?
9. You do not make profit or loss in share market unless you sell the shares. Seeing your shares climbing sharply just after you have purchased the shares could give you immense pleasure, but it will not give you money unless you sell the shares.
10. The stock broker will always make money whenever you sell. It doesn't matter if you make or not.
11. Not opting for 'Stop Loss' is foolishness.
12. Tracking share market will always require more effort than you think.
13. You think the stock brokers know more about the share market than you do? Think again.
14. Ask a financial expert to predict if tomorrow the shares will go up or down. If the general trend is going down, she will say it will go down further. If the general trend is going up, she will say it will go up further. No rocket science here.

Investing in shares should be part of your investment plan. Not the complete investment plan.