Common Stock Market Tips
Every person in society wants to live a good life. For this reason, people save money from their income but your saving is incomplete until it is invested in the right place.
People who want to get a high return on their investment, they prefer to invest savings in shares.
But When people invest their money in share than are not aware of the stock market so, sometimes they lost their money.
The main reason for this is that most people are not fully aware of how to invest in the stock market. In this article, we will tell you about tips that you should be kept in mind before making a share market investment.
Those who are new in Share Market, they can read this article which is related to the beginner’s investment.
You should learn about the stock market when you invest in a share market. First, understand the stock market then come into it.
For this, you should give time to learn and read the business news. You should understand the business plan of companies. Also, you have to read a balance sheet.
You should read about the P / E, EPS, ROE well then invest in a share market.
Long Term Investment is the best
If you invest for a long time in the stock market then you can get the benefit. It is sure to be profitable when you get the proper information. Intra-day trading can make more money in less time but there is risk in it. This can also cause you to lose so, do long term investment only.
Buy what you know and understand
You can buy the shares of any company in the stock market. But you should initially buy the shares of the same company that you know very well.
For example, you will be able to understand a company which products you are using in daily life like Maggi, oil, biscuits, etc. But, it takes some time to understand a company with hardware manufacturing, software, web development, etc. Invest in a company whose business you understand first.
Set fixed price
Always set a fixed price for your stock to sell shares. For example, you buy a stock for 1000 thousand and set the target price 1300. So, When the share price will be 1300, then you will sell it.
Do not buy too many shares at once
You should not buy many shares of one kind of company at once. You can buy shares of companies from many different sectors in between the gap of fix time. You can increase the limit of your stock on a weekly or monthly basis.
Create a Risk Profile for Portfolio
Investing in the stock exchange is risky, so you must make your risk profile. In this way make sure how much risk you can take.
Most of the brokers give you the option of a stop-loss order. This is an advantage that as soon as the share price starts to fall, then your stock is automatically sold by your broker at a particular price. This saves you from taking the loss.
Do research and planning
You should research and deep planning before buying any company’s stock or before investing money in the stock market. Keep updated with the market news, look at the records of the company whose stock you want to buy.
Look at its management, also consider any political and social changes that may occur in the future. Keep watching the market slowdown or boom.
Invest in Different Sectors
You should not spend all your money on a single type of business. You have to invest your money in many types of companies.
If you invest in earning money in the same company, then sometimes you may get more loss or more profit. It depends on the profit and loss of the company.
Invest extra money
You should invest your extra money in the stock market. Because, if you lose your money, you will suffer financial loss and it will affect the daily convenience.
Don’t waste Your Time
If you ask for related advice then you should not waste time during the purchase and sale of shares.
If your stock has reached the target price, then sell it quickly. Don’t wait for the stock to rise further. And if your stock prices are decreasing then don’t wait that after some time its prices will increase again. By doing this, you will less lose the price.
There is a lot of noise when the stock market achieves great momentum and starts to reach the highest level. At that time, inexperienced people buy or sell shares and think that they are smart despite having no investment experience.
This is a method of gambling, not investment. The gambler usually loses a lot of money and continues to gamble because of occasional wins.
After investing in the stock market, you not only have to pay attention to the ups and downs of the companies but also keep an eye on the movement happening all over the world.
An incident or accident in any part of the world has a direct impact on the Stock Exchange. So you have to keep yourself updated at all times.
Do Not Get Lured By Small Shares
If you want to be a good investor, then do not get lured for smaller stocks than usual. Successful investors know that investing in small shares has to be lost.
Among them, the possibility of loss is much higher. They are well aware that whenever these small stocks are raging, the market is full of risks.
Before investing, you have to do a lot of deliberation of Return of Investment. This calculation will not be wrong if you earn at least 12% of the income in your investment.
But, if you get very excited and expect to earn up to 50% income then sometimes this enthusiasm can cause you huge losses.