onsider yourself a novice at equity trading? Shaking upon thinking of the market risks? Or wondering how to make the most out of your investment in the volatile market? Let’s start then landprime:
Most importantly, to be in better control of your investments and ensure that your financial goals are met, you need to approach stock investing in a planned and strategic manner. Here are some important share-market tips that you should know before investing in stocks:
1 Analyze Your Investing Criteria And Goals:
Judge your financial goals: Every individual has his/her own appetite, hence their investing strategy would be unique in each case. For example, for a man with a shorter time period and significantly large financial amount – an aggressive trading policy such as Intra-day trading, should be practiced.
On the opposite hand, for a person who wants to build up a large fortune without any time constraints, as in the case for retirement funds, long-term investing with a horizon of 7 to 10 years is favorable.
Risk Tolerance: One should always be aware of the risks involved due to the constant volatility of the market. These stock-market tips would hence help to decrease the risks and help you (i.e The Retail Investors) to take an informed choice. Understanding what proportion risk you’re comfortable taking is crucial.
If in case you push yourself beyond your risk threshold, you are bound to make emotional decisions once the market moves against your favorable direction. This may result in an unhealthy trade for you and may even push you out of the market for good.
If you push yourself beyond your tolerance limit, then you will make emotion-based decisions when the market starts moving unfavorably-which can be quite unhealthy for your trade.
2 Diversification:
An important step in your investing journey.