TIPS FOR BEGINNERS IN STOCK MARKET
If you are a beginner in stock market, then welcome and congratulation for this decision to get knowledge about Tips for Beginners in Stock Market. Firstly I want to tell you that, you should think about your financial goal, the reasons for investing, your timescale and how much money will you need to achieve this goal?
Here are 10 things to keep in mind while investing in stock market, few may be particular to Asian Market.
Please note that these things are known to everybody but no knowledge is useful till it is applied.
- Always invest in top 50 stocks listed in NIFTY and make a habit of seeing the profit and loss statement of the company for the past 5 years. Even a normal person can see if the company is making profit or loss.
- Never trade for short term gains if you don’t have the patience to study the technicalities, even if you get a profit immediately you will try to repeat the process and will fail as there is no understanding of why you landed in profit or loss.
- Check if the stock is paying regular dividends.
- Remember the stock price will fluctuate, so never invest your amount in bulk. Invest in parts based on pricing or time.
- Never buy a stock in news or tips just because it’s price is increasing continously.
- Don’t expect wonders in short time and stay with the stock as long as possible but make sure you invest continously in parts, otherwise you will feel helpless when the stock price falls and you cannot buy at that price.
- Even a good stock bought at a very high price can make you suffer. So just check if the current pricing is good based on the history and fundamentals.
- Don’t invest in a loss making company no matter how much it is recommended or in the news.
- Build a portfolio of 10–15 stocks to balance your risk accordingly.
- Finally No greed and no fear.