Here we are again. We are sure you must be pleading by now to allow
you to finally trade. We’ll it’s your money and you know what the best
way to utilise it. We respect your choices, but as well-wishers we don’t
want you to take hasty steps in investment. It’s your hard earned money
and we want to see it grow. We think it’s extremely important to read
the below given points before you invest in the stock market.
1. Be disciplined in your investment approach: The
best strategy is to follow a disciplined approach of investing. Select
few good blue-chip stocks after checking the company performance in
past, present and its strategies for the future. Stick to those stocks.
Don’t keep shuffling your portfolio unnecessarily. Give your portfolio
time to grow.
2. Use only your surplus income to invest: Always
remember, investments are always subject to market risks, especially if
you are trading in short term. Invest only in those funds which you have
spare with you. Always keep yourself liquid for unknown contingencies.
This will always help you, as you will not have to sell your stocks at a
loss in times of need.
3. Never Ever Borrow to Invest: I have personally
seen over the years that the more enthusiastic people, in their wake to
become rich quickly, borrow from outside sources to invest in the stock
market. And I have seen them fall. FALL BADLY because they invested with
borrowed money, but markets didn’t turn up as expected. I have seen
people lose everything because of falling in the debt trap. DON’T DO
Instead invest intelligently with whatever you have, so you are not
burdened. Let your money grow. Always remember, slow and steady wins the
4. Avoid following what your peers do: It is a
typical tendency of newbies to buy what people in your circle are
buying. This is a wrong strategy. Humans are the most intelligent
animals, than why do we have to follow others like a sheep in a herd? Be
open and be aware of what people around you are buying, but use your
intelligence to understand the pros and cons of investment. WHEN YOU
MAKE YOUR OWN DECISION, YOU MOSTLY MAKE THE RIGHT DECISION. So have
faith it your research, instead on someone else’s research.
5. DON’T follow Tips blindly, even from an expert: Again
don’t ignore them, but don’t TRUST them either. Take them as an aid for
your own research. Tell me, if the person who was so convinced with his
Tips, why will he give it to you? He will rather use it himself and
become rich. Why will he prefer to work for his company or why would he
charge you some hundred or thousand rupees for tips? If he really had
conviction he would want himself to be an millionaire than you.
6. Don’t let your fear or greed influence your decisions:
Stocks can rise or fall unexpectedly in the dynamic market conditions.
Always set your targets and your expectations from your investment.
Don’t ever panic in the market. Remember if you have invested in good
stocks, they will most likely not betray you. So don’t be influenced by
crashes in the stock market.
Also even if your stock is performing exceptionally well, always
remember the target you have set. Don’t try to be greedy. Book profit
when you have achieved your target. If not, chances are the stock may
come down after market settles and you will have to wait longer to
achieve you target.
GREED and FEAR in the stock market are your biggest enemies. And you are your BIGGEST FRIEND.
Last But Most important thing is research, study, and have
faith in your own research. There is no better thing than your own hard
work and knowledge that you put in. There are no shortcuts.
We surely hope that you will follow the above basics of investing in
the stock market. And we surely hope that you earn exceptional returns
from your investments. We want to see your investments grow, because at Moneypalm we believe in our philosophy – “Together We Grow”
Have an exceptionally happy and profitable time investing in the stock market.