What is the Pro / Cons of Equity market from traders’ perspective?

[Hema]

Cons :

1.  volatility

2.  Risk of major crisis

Pros:

1.  Earn income from dividends

2.  It has long – term growth potential.

3.  Ease of trading with instrument and tools.

4.

[Vishal Rath]

Pros-

Trader can trade in equity, future, option.

Money can be made faster if one knows how to do trading.

Cons-

Risk is high, if trading is not properly done.

It is subject to market risk.

[Vijayavani]

Pros:

* Can make easy money if one has strong knowledge of equity market.

* Future options help traders to earn money with less investment.

Cons:

* Even with strong knowledge of markets one can lose money.

* Long term investment in stock can require more money for investment.

 

[S Suresh]

In equity market it is full cash settlement be it buying or selling that has to be done the same. Like I buy shares I will have to pay full cash to buy and seller gets full cash on the same day.  But here the risk of the holdings going to zero is very less compared to future and options market.

[P Vijay]

It’s a dynamic market which cannot be predicted 100% and there is always an element of risk in the trade. However, calculated risks turn it into business when returns outweigh the risks.

Traders need to have sufficient cash for settlement of the trade and can be a limitation

[Author]

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