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Indeed, a great article which will make you think. Warren Buffet had once given a formula for investment in shares. ‘Be fearful when others are greedy and be greedy when others are fearful’. This explains that, people will start investing when markets are already high thereby increasing demand for shares, this is the time for you to sell your shares and book profits. While when share market is crashing, people become fearful and sell their shares thereby reducing the demand, this is the time when you can buy shares at very low price. Common people can earn better results from share market if they invest in long term instead of short term trading. To support this, Warren Buffet rightly says that ideal time for keeping the investment is forever. Hence, to earn good returns from share market, you need to act like an investor and not like a trader as trading needs knowledge of all minute details about share market which investors may not have. Technology has made investment in share market very easy with tools like demat accounts, easy availability of company’s financials, government policies and related market research. These tools if used effectively, will help you to invest in share market very effectively. Investment in shares has one more added advantage: once you invest your money in market, you start analyzing the market conditions and company’s performance. This keeps you updated about the current affairs on policies, economy and business scenario. The disadvantage of investing in long term is, it becomes difficult for investor to dilute his/her investment in case of emergencies if share market is trading at low levels. Hence, careful investments in share markets can fetch you better returns than traditional investments.

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