Ways to invest at High Levels in Market....

As the equity market is touching new highs there are more and more people who are finding themselves interested in the markets. The obvious reason behind this new interest is the amount of returns that other people are getting from the markets and the temptation getting buildup in the mind of others who are not getting the same. This is not a new thing every time the market goes up there are people who come in. They are the ones who become the buyers for those who are already in. These new buyers buy shares at high prices and when they go to sell these shares there is no one to buy these shares, Result? Markest crashes. These new people in such cases get out and book losses. These are the only people who spread a bad word for the market and start saying that the market is a gamble. If you are entering the market like these people please read ahead.
Markets are still very highly valued. So the possibilities of market crash are higher. So if you are planning to invest at these levels study the stock well first. But frankly it is not possible for everyone. so there are two way outs.

1)Intra day trading: Many people think it as a gamble. But it is not so. In case of gamble there is no logic for winning. but in trading there are many logical considerations if you understand at least a few of them you can find out the best stock for that day put your money on it. The best thing for intraday is that you can buy up to 15 times of your actual capacity(depending upon the margin provided by you broker) whereas in case of delivery based you can buy only as much as the funds available with you. So in intraday trading your broker invests more money on your behalf hence you are liable to pay only the loss if the same occurs if your call is correct and you gain, you are not required to pay even a singly paisa on the contrary the market pays you the entire profit. Another best thing about the Intra day trading is that you can sell the shares first and buy them in the evening. This is commonly called as shortselling, which is not allowed for Delivery basis. Again there are some other benefits like less brokerage etc.
Only drawback of intra day trading is that you have to give a lot of time to it and need to have some qualities like general information about current afairs, loss bearing capacity etc.

2)Mutual Funds:The second option is divert your money in the form of Systematic Investment Plan(SIP) to professional fund managers through Mutual Funds. Due to SIP you will get the benefit of falling and will be able to get the advantage of Falling Markets by reducing your average price,
So both the ways are available. Now the choice is yours.

Rgds.,
Japan Shah
japan.shah@aol.in