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INVESTOR PERCEPTION

5Th DEC 2020      Every investor expects high returns with no or meagre risk.Investors expecting zero risk prefers fixed deposits,but inturn the financial institutes do business with risk to give returns to depositors.Second category of investors who bear small risks may opt for business.High risk taking investors enter stockmarkets.The main  public opinion in India is  that people lose money in stock market.This may be true to some extent,if every body loses where will this money go,some one should gain.

                                             The main reason for imperfection in Indian capital market is the low participation of retailers.The retailer participation is not more than 2 percent of Indian population.The participants of capital market have to look for certainity in uncertaintiy.Newton's IIIrd law guides us .we have to depend on reaction which is certain for every action.If falling of stock price is action,rising would be reaction and vice versa.Using available technical tools.reversals of prices can be predicted and accordingly entries and exits can be made.The main thing to note is that in capital market  reactions cant be exactly equal to actions due to the presence of frictional loses of market imperfections.

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