Investing in stocks can be a thrilling experience for anyone – as long as they’ve learned the tricks of the trade.
Stock Market Investing Tips – Some Guidelines
This fun and enjoyment takes one further and one gets hooked to learn the basic knowledge of the trade. But it has to be understood that that stock market is not a place to become rich quickly by luck. The success of Stock Market is based on expertise and experience, which requires time to learn
Some Guidelines for Stock Market Investing
• Remember to invest for long term and keep investing regularly. The growth can only come over a long period of time.
• Investments should be done regularly in small amounts. It is not wise to invest a large amount at one time. The best option is to invest monthly. This helps in getting more shares when the price is low and fewer shares when the price is high. The investor learns the art of discipline.
• Investments can be in the form of shares. A detail study of the company’s future prospective and growth should be estimated by gaining knowledge from different sources.
• Research of companies need to be done on internet about different companies. Keep an eye on a few shortlisted companies about their profit and loss, growth dividend paying history and the price of their shares in the market.
• It is advisable not to work on tips, because tips are rumors. Depend on suggestions or tips based on genuine research by experts.
• Make it a rule never to invest money in the stock market unless there is excess to money to risk. If ever money is put in stock, it should be in a small amount.
• Always try to know the risks before investing. Investing is rewarding but stock markets can crash and bring in a total loss.
• It is foolish to think of becoming rich overnight. Keep patience and start investing early regularly and for a long period of time?
• Never put all the investments together. They should be distributed in different companies.
• It is important to book profits when the defined target is reached. The aim should be to buy at a lower price, sell at a higher price and then repeat the same process.
• Investing is fun and people doing so enjoy themselves without taking the success onto the head and failure to heart.
• The stock market is not a suitable platform for everyone. But for the adventurous people with an open mind, it can be a thrilling journey.
• Investing in stock should be started only with the extra money in hand, after all the expenditure.
• Do not invest in one place . Distribute the amount at several places to face the ups and downs of the market.