Advantages and Limitations of Share Trading

In order to increase the capital, the companies across the world issue shares. The public is allowed to buy and sell shares when a company issues shares. The process of these dealings is known as share trading. There is always a broker involved in the process of share trading. The prices of shares are changing constantly and it depends on the market forces of demand and supply so the prices can be rise if the demand increases and prices can be low if the demand decreases. Share trading process has two sides one is its good side which gives advantages and one is its bad side which has some disadvantages just like the example of a coin with two sides. Let’s understand it’s both sides:

If we are talking about its good side then we expect advantages from share trading in the form of profit. We expect good return of our shares. If the shares can purchased intelligently then one can expect good results in return. The best thing is that one can buy shares only when the prices are low and when the prices become high then sold them. This is the best way to get good result by holding shares. The process of share trading is not very complex but if you are a new investor then firstly understand well the process of share trade and then take next buying or purchasing step. There is a wide variety of companies and it’s difficult to choose from this array of companies. The demand of buying shares is so high in the market and there are so many companies who issue shares almost every day. According to this huge variety of shares, investor has to choose the best one according to his planning and strategies. Electronic exchange is also the best option of trading shares. Through the online electronic exchange option, one can easily buy and sell shares online. Broker is also involved in the online process. From this option, one can save fuel, time and energy.

If one can discuss its negative side then there is loss in the share trading process. If some buy shares at high rate and suddenly the prices become low in the market then that person cannot sell their shares on high rates. Fall down process of shares is the risky process no one knows when the shares fall down so that’s why it is risky. Uncertainty is also involved in the share trading. Prices can be changed because of political pressures, government policies, etc which is the negative side of share trading process. Forex trading can seem complex for beginners however ForexBoat provie full training and online courses to make it easy