By purchasing shares from Stock Market & Selling them into the same place are called direct equity trading. Direct equity investment can be very rewarding. Simultaneously this is also true that risk of loss in direct equity is high. People who can balance risk and return while dealing with direct equity are the winners. But how can one balance the risk and reward? The risk associated with direct equity comes from complexity of information. It is not so easy to decode information’s related to equity. Information’s related to equity is contained in companies financial reports like balance sheet etc.