Many of us use our hard earned money to invest in stock market. A right investment can give you better returns and with lesser risk. Where as a bad investment can give you nightmare because the volatile nature of share market can convert your hard earned money into dirt.
But if you become thoughtful in your investment decision and invest your money strategically with proper planning you will get best return. So here are some tips that will be handy before you jump into the sea of vast opportunities of stock market.
Always study the stocks before buying it
Never ever invest in any stock on the basis of market rumours, advice from friends and suggestions from some random influencers. Before investing always study the company. Try to analyze the company , its management, its promotors and goodwill. You may take help from some investment professional but as much as possible gather information yourself.
Analyze your risk taking capacity
As much as it is important to analyze the stock, its important to analyze the risk taking capacity of yourself. Stock market is exposed to various risks such as inflation, change of interest rates, currency movement & volatility etc. Therefore its necessary that you asses your risk taking capacity.
Don't put all the eggs in one basket
Never put all of your money in one single stock. Always diversify your portfolio by investing in equities from different market sectors. While investing your main goal is to multiply your investment over the period of time. This can be make sure by diversification. Because if one of your stock might not perform well then there are other stocks which can compensate and balance things out.
Your return expectations should be real and practical
Always be realistic about the returns you may get from your investments. Also, always keep in mind all the risk factors included and be ready for anything unwanted like loosing money. Because you can't predict the volatile nature of stock market. So be prepared mentally for everything.
Also never trust anyone who guarantee big returns from any stock in very short period of time. Because that would be a scam most probably. Its very rare that you get massive returns from any stock overnight.
Periodically monitor your investments
Always be in touch with national and international news related to stock market. Also time to time check the status of investment you made. Always choose the right platform for this. This could be any trading app with good customer feedback.
Final thoughts
You should always consider stock market as investment option to grow your money and also to beat inflation. But don't dive in the pool with learning the basics of swimming. I mean to say never ever invest blindly. And never trust any armature's tip for investment. Either study the market yourself or take help from any expert professional .
Comments
Post a Comment