Wednesday, January 27, 2010

gaining money v/s gaining stock

When u r in the market, u gain profit, and when u r out of the market u gain stocks. e.g. If u bought 1000 suzlon shares in 95 for Rs.95000/- and if the share price were to go up to 125 u gain Rs.30000/-. On the contrary if u anticipate the fall and get out at 95, u could buy 1266 suzlon shares in the same Rs. 95000/- at Rs.75, thus earning 266 shares (26.6% return).

So, if u r sitting on cash don't be in a tearing hurry to buy. because u are still gaining - stocks.

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