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

[Nishad]

Pros – Historic returns, Diversification

Cons – Loss of funds, Recovery time

[suraj]

pros – you trade only based on the funds you have and the profit and loss in based on the corpus amount.

cons – you cannot take arbitrage position is equity market. You can’t trade on the index. You can’t sell and buy on a later day.

[Dr Faiz]

Investing in stock market is good as long as knowledge and discipline is maintained. Investors sometimes get carried away with greed and fear leading to emotional decisions.

The pros are that it can be studied and analysed by the technical analysis on a minute to minute basis . There are various indicators that can be used and success can be achieved .

The cons are the majority of investment in the market is in the derivative market and only about 10%  is in the stock market.Foreign investment inflow is a major booster of sentiment and their outflow affects the market a lot. This cannot be predicted and so mid and small cap shares become very volatile .

[Nishad]

Successful stock investing requires a willingness to accept the risk that the shares you buy may decline in value. This understanding allows the individual investor to better predict when he should buy or sell

PROS – Abundant Choices, Liquidity, Opportunity substantial return

CONS – Volatility, Investing can be time consuming

[vasanth]

 

No obligation

simple operation

Long potions are possible suitable for large investments

 

volatility of market is high

Less options as compared to F&O so deriving  profits are lesser

[Author]

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