Obviously it’s good to invest in the stock market. Large number of people invest their money in stock market as secondary income source. Knowledge and patience must be needed before investing in the market and without that if you will go to invest directly than you will lost the money definitely.
• First start to learn: What is stock market, on which principle it works, how stock price calculated, factors affecting stock market, how economy affect the market and all that. Than try to make your own investing strategy.
- To learn about the STOCKS first you have to learn about STOCK MARKET.
- First learn how the stock market works, on which Base and on which principle it works.
- Know first that by how the stock price go higher and lower.
- Learn how the COUNTRY'S ECONOMY and WORLD ECONOMY affects the market.
- Before investing in specific company first study the FUNDAMENTALS of that company. The company is strong or not fundamentally.
- Then see stock price is overvalued or not. If it's overvalued then wait to invest.
- MANAGEMENT of the company is good or not.
- Also check the DEMAND of the company's product in the market.
- Analyse that by how that company is different from its COMPETITORS.
- Observe the company's PERFORMANCE in last couple of quarter's. If you want to invest for long term then go for last couple of years.
- ANALYSE the GRAPH OF A DAY, A WEEK, 15 DAYS, A MONTH, A QUARTER, 6 MONTHS, A YEAR and if invest for long term then LAST 2–3 YEARS AT LEAST.
- Also see the investors trend in market.
• Don’t invest your money blindly in market just because your friends or somebody else tells you. It’s your money not their. So, invest as per your calculation, knowledge and experience.
- Don’t buy or sell just because everyone does.
• Always risk is there in the market. So, be prepare if the market falls. Don’t take much stress and try to decrease loss by stop loss strategy.
• Before investing in the stock market just make sure that you have enough money in your hand. It’s always recommended to put your savings into the market but not all of them.
• When you are going for invest first time try to invest money safely. For that investing in mutual funds and bonds are good option. And when you got enough experience than come into the actual market.
• Once your portfolio reach up to your goal, just get out from that. Don’t expect more.
• Instead of investing everything just in one stock it is recommended to invest in more options so, if one doesn’t give return than after overall you are in profit.
AFTER COMPLETION OF THESE FINALLY GO TO INVEST IN THAT COMPANY WHICH FULFILLS YOUR ALL REQUIREMENTS.
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