Hello Friends :)
Many people from all over the world are interested in stock market. And some of newbies are investing the money without the basic rules. Remember stock market can change our status in no time.. I mean it can make us poor from Rich and it also having capability to making poor people rich in one night. In short they are very risky and better we go for it with all cautions.
Some Basic Rules :
Be A Long Term Investor : This is important thing. Better you go for long term investment rather than going for short term. All experience
people knows that the people who used to be a daily trader always end it the lose at last.Invest Time and Efforts in Doing Your Homework : Before going for any kind of investment better you invest your time and efforts behind researching about the thing in which you are investing. Never go for anything with blind.
Pay The Right Price : It means that for which you are going for invest, you invest it with proper price. Don’t rush for it and buy it on high price. Wait for the right time and the right price before investing.
Do Not Buy On Rumors, Focus on Fundamentals: This is quite important. Never purchase or sell any stock by hearing some rumors. Instead of that focus on the fundamentals of that stock. Rumors are just to manipulate us. So better take care of it.
Buy Shares Of Company Whose Business You Understand: It means that don’t go for investing in stock about which you know nothing. Instead of that go for company’s
share whose business you understand or know the complete detail.Don’t Sell In Panic : Never sell your stock in panic. If you think that you are loosing money then wait for the right time. It may reduce the lose or can give you profit instead of lose. So keep this thing in mind.
Don’t Borrow Money For Investment : Never invest in stock market if you don’t having your own money for investment. Only invest with your own money.
Don’t Stuck With Only One Stock : Don’t go for only one stock. If you know about multiple company than after finishing with one stock go for another. Variation is important.
Invest regularly and gradually build up your position : If you want to invest certain amount for one stock. Then don’t invest all the money together. Invest them with intervals and regularly. It will build up your good position in the market. Suppose you have purchased some shares at one point then purchase some other when Rate goes down so by this way your average of purchasing will come down too.
So these are the basic points of the stock market which should be follow by all Investors. I hope you liked this information.