My friend yesterday told me that he had invested $3000 in the IPO of Reliance Power and complete disaster was the result. He was so frustrated that he even made an oath that he would never enter the stock market again! Dear! Dear! Dear!

When you purchase a single share, you become the owner of the company and it is something missed by people like my friend. Being the owner it is your duty to share profit and losses. But we can minimize the risk with some experience and patience.

Stock market is certainly a place for people who have the patience for waiting long time. Hit the top of the nail when it is hot. If you decide to hold your shares for at least 3 years then the story would change.

Selection of companies is another important thing that decides success in trading. Never follow rumors and invest in good companies having credibility. It is better invest in mutual funds than shares if you look short term gains. The term really costs dear. Believe me. My uncle invested Rs. 2000 in HIL shares almost 18 years back and sold the entire shares for Rs. 450,000 just last year. Term really plays a major role in share market. So hold your shares and hit the top at the right time.