It is also vital for him to keep a track of the various regulatory compliances to ensure that funds gain in value while not violating any regulatory requirements. It is as difficult as finding out a black cat in a dark room. I suggest that you concentrate only on companies where the business module is clear, future prospects are known and the management is relatively transparent. Also keep a look out for companies that have had technical breakthroughs clubbed with encouraging financial economical and political forecasts. I beg to differ.
Small investors are the backbone of the capital market.
Their entry and exit is seldom timed and they tend to get carried away by the hype created in the capital market. For instance, a small investor might find the idea of investing in the capital market foolish. At the same time, they will rush to invest once the index crosses the 4000 probably, according to me that is time for exit. I suggest that a small investor should try to invest when the market is at a low ebb and book the regular profits with the rise in prices. I doubt that.