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What drives NEPSE: Its Players NOT Financial Statistics !

Published by Octron on September 3, 2008

Nepal Stock Exchange, aka NEPSE and well someone even calls it Casino is pretty interesting place to be in. You can see wide range of players here to try their luck or judgement based upon their fate or knowlegde respectively. You can find some players maintaining their share portfolio below 1,00,000 (0.1 Million Ruppees), some even above 10 Million but most of the lies between 0.3 – 1.0 Million range. Its pretty obvious their portfolio changes time to time based upon their holding shares price, and also each of them wants to get into next level with making decent amount of cash regularly.

Above were the three major category of players in NEPSE who are trading regularly and who can change the course of NEPSE from minus to plus and vice versa within few minutes of trading due to their delligence or their stupidity or something else.

Its not just their portfolio capital, which is different also their take on scrips !

There are long term investors and there are short term investors.

Long term investors generally choose a well established company stock with minimum risk. All they want is sound dividend and small increment of share price, like Standard Chartered Bank for instance. They just want to invest for the future, not present.

While short term investors, wants immediate gain and vouch upon anything that is increasing and sells them when it starts declining like an impaitient. Interestingly, short term investment are the most yielding ones and has high risks than long term ones. Like recent NTC shares, people who bought at 900 just 2 days ago sold it for 1200. They made very high profit within 2 days. But there is also risk what if all people becomes short term investors. Then there wont be anyone to buy those shares and price will keep tumbling down.

Interestingly, these kind of investors can come from all three classes. The flow of index changes from positive to negative mostly when these investors fail to make right decision and every things go haywire.

For e.g. any smal investor who thinks a scrip is a long term investment and invests upon it all his amount and later finds himself in a roller coaster within a week of purchase would definitely go out of his mind. Gets panic attacked and during that moment he/she might make an absurd decision which might start the domino effect…

So before entering into the market KNOW YOURSELF, what kind of player are you instead of knowing the market. If you are short term player, with minimum paitence then stick to it might not be able to make as much as from long term scrips. Worse you might lose everything.

And if you are long term trader, choose correctly the scrips; – Be well equipped to understand the financial statements, dont get dettered with market whims and crashes. After all it takes all kind of players to make and break NEPSE !

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