Share Market Long Term Trading

Corporate Investment for Long Term Trading

Taking delivery of shares during Q1, Q2, Q3 and Q4 results is very common among investors / traders, who knew the historical performance and current market situation of those particular companies or sector, so study historical yearly profits and sales ratios of top companies and buy shares of those companies.

Some weeks before, their quarterly results and after declaring their huge growth in quarterly results, obviously share price will about up then you may sell your shares and make handsome profit in very few weeks.

If you hold bit longer, then you may also get benefited of dividend.  If companies make outstanding profit then they may declare dividend.

Returns on investment in Indian companies :

There are very important benefits of Delivery based trading.

Hold as long as you want :

If you buy shares and if it goes down, then you can hold them and sell them only when your shares go above your buy price.

Loan

Now-a-days, some banks and some financial firms provide loans on your shares.  So you can utilize your shares in your bad times.”

Dividend

If companies make good profit, then they may declare dividend per share.  If you hold shares of such companies then you may get dividend per share.

Good Returns

Now-a-days if you keep your money in banks then you get maximum 9 or 9.5 per cent per year.  If you invest in shares of good growing companies then you can earn minimum 15 per cent returns per year.  Some companies give 30 to 40 per cent returns per year.  Best share market returns are based on delivery based trading for long term. 

Bonus Share

If company makes extra ordinary profit then company may declare bonus shares.  Bonus share like 1:1 means if you have one share then you may get another free.  So if you have delivery of such shares then you are liable for such bonus shares. 

Money Making Opportunities for Long Term

It become very important to decide for delivery based trading that how long to hold shares of a company – right ? Please watch on following two important points :

• Watch Q1, Q2, Q3, Q4 results of a company and check whether company is declaring / posting consistent profit or sales, its very important for a company to declare quarterly results in good profit percentage in order to prove its consistent growth in the market.


• Declaration of future plans, expansions, acquisitions, mergers etc.  Any good such plans can boost companies profit, so you may plan to hold such shares.  Such plans are very important.