How to Invest in the Stock Market

Or Should i say what not to do while investing in stock market's.....

There are some common mistakes that individual investors like myself always tend to do while investing in the stock market and as i did once, i dont want anyone else doing the same. So here are a few points to be careful about.

1. Some stock brokers talk about "TIMING", buy low and sell high, its not possible to predict the market so accurately, so its best to stop trying to. Someone you know might have made some money out of this technique but in the long run it could give you losses.

2. Don't try to be a "FOLLOWER", Don't "COPY" someone, just because someone you know from somewhere made some money on some stock he bought cheap, it doesn't mean you will be able to replicate the same performance. If you don't know how to do it just don't do it.

3. Don't invest everything in One stock, be careful, do your research, get to know the company before actually making an investment in it. It would be foolish to invest all the money in one stock. You might win some but then you ave an equal chance of losing everything.

4. "TIPS", stay absolutely clear of them, just dont invest cause someone tipped you about some stock, it could be for any reason maybe some broker trying to increase the price by word of mouth so that he can sell of his stocks. Its risky and not worth the effort.

5. "OBSCURE" Stocks are stocks which no one has noticed, and if you decide on investing in them just for the reason of them being obscure, it would be foolish. There probably is a reason for them being obscure. so be careful.

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Văn Sát said...

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