Friday, February 8, 2019

Stock Market Investment Tips for New Investors

February 08, 2019 0
Stock Market Investment Tips for New Investors

If you are thinking of making a killing in the stock market, these investment tips are for you. The truth is you can make a fortune by investing in stocks, but bear in mind that you also undertake the risks that come with all investments. Below are stock market investment tip for new investors.

The first investment tip is for a successful investment is to do your due diligence. Due diligence is a phrase usually used by investors. What it means as an investment tip is doing proper research. In other words, do not plunge into any risky investments before doing your homework. Read up about the stocks and take the time to understand the businesses that you are going to invest in. That will help minimize your risks.

The second investment tip is not to listen to news and rumors. It's important to know what you are doing so that you won't be wavered by groundless rumors. There are always news and rumors flying all over the place. If you are easily swayed, you may make a rash investment decision and that may cost you a fortune. This is also related to the first tip. If you can understand the businesses well, you know what to believe, and what not to believe. Trusting your gut alone is not enough. You must also be smart about your investment decisions.

Another investment tip is to avoid speculative investment in your investment. This because new investors usually; make the mistake of making risky speculative investments. New investors are not always patient enough to conduct proper research as they are out to make a quick buck. This always place them at a high risk of losing huge sum of money should the stocks take a bad turn.

The fourth investment tip is to spread risks. This investment tip means you should not put all your eggs in one basket, especially if you know the stock you are investing in can be quite risky. It's true that some stocks with higher risks may return higher profits. But what if the stock plummets? If your investment is spread out over a wide variety of stocks, you won't be so badly affected.

You also need to think of both short, mid and long term investments in investment tips. Don't just think of making quick money. Place some money in long term investments as well to spread out the risks. Wise investors usually invest only in businesses with sound fundamentals. They invest because they see real value in a Company's products and services.

Greed is another important investment tip you should take note of. Do not be blinded by greed. Avoid being emotional about investment decisions. If you find that you can't think with a cool head, put off the investment. There will always be other opportunities arising at a later date.

Knowing when to cut your loss is also important in investment tips. This is because, cutting loss sometimes may be your best decision. Don't hold on to a stock that you know is going nowhere. Know when to cut loss when you invest in a stock. That way, you won't be caught holding on to a stock when it hits rock bottom.

The No 1 Investment Tips

February 08, 2019 0
The No 1 Investment Tips

In this article, we will be talking about tips you should follow and those you do not need to pay attention to as there are several investment tips out there. We will first talk about the investment tips you do not need to pay attention to.

In investment tip, it is always very tempting to listen to what your friends are saying and then follow suit. You see, if they are right about the next hot investment, both of you can reap the rewards and celebrate together. And if they're wrong, well, all sorts of thoughts come into mind. Oh man I listened to the wrong person. Maybe I should have followed Alex's advice instead. He seems better at investing. All except maybe I should have done my own due diligence in my investment decisions. Doing due diligence does not equate to spending hours listening to the tip-giver and trying to get yourself convinced that this investment shall be the next big thing.

In investment tips, carrying out you own due diligence is important. It refers to taking a step back from all the noise and starting to understand what you may be going into. There are definitely many pros in buying certain share, but do consider the downsides. What if the deal did not go through? Is this industry really thriving? Having a balanced view of the potential investment is crucial.

The amount you can put in to investment should be asked when it comes to investment tips. Next, understand your current financial position. In my view, investments should always be made with the excess funds one have, not with the money you need on a routine basis like rent, meals and transport etc. Assuming you have $2000 in extra cash, is it enough to make the investment? Share prices may be above $2 whereby $2000 is not enough to purchase 1 lot (1000 shares) of the shares which is normally the smallest quantity. Next, have a plan to execute your investment.

A plan is needed in executing your investment plan making this investment tip an important one. Every investment plan should be made simple and customized to your own needs. The investment tip is developing your plan should be in this order; how much spare money do you have for investment? Will you need it any time soon? Are you comfortable to put this money into investments, knowing that there is a possibility of you losing everything? Are you a daring person?

One other important investment tip is knowing how much you are willing to risk because many just jump into investing without knowing their psychological limits. Once they make a loss, they just decide to hold on to the shares till it comes back to the original price and then sell them away, relieved that they did not make a loss.

This investment tip is very dangerous because share prices may not rebound back to previous levels or worst still continue to tumble.