5 GOLDEN RULES OF INVESTMENT IN STOCK MAKET OR SHARE MARKET

A seasoned investor also encounters a confusing situation between sell the stocks, hold the position or buy more. The beginners in share market should be very much meticulous, even if they are 100% sure to get quick returns on their investments. They need to 1^st learn the basics of investments, experts says nobody can ever get expertise in this area.

Here are 5 GOLDEN RULES OF INVESTMENT IN STOCK MAKET OR SHARE MARKET FOR BEGINNERS

1 Know the value of share, not the price the price

The most important area where an investor should spend time is learning the value of share and not the price. If studied well and then the price paid to buy those shares are immaterial over the period of time, people tend to spend more time in know the price of share which is frequently changing, it may be because of due to cheap internet net pack and good network speed.

2 Right pocket to buy shares

Well, it’s very difficult task to find the right value of share and right time to buy. Therefore, its mentioned in earlier article slow and steady wins the race, thinking of earning huge money overnight can be a costly affair. What you do when you have unknow road, you go slow, even when the topic we read is unfamiliar we read slow.

Let us understand it with an example, if a company’s share used to be traded at Rs 2000/- each share, falls to Rs 20 and you thing this is the right time to buy, then you are wrong it may fall to Rs 2 as well. There is no right time to buy a share buy what your pocket allows, then the question is how to deal with this situation? Answer is systematic plan of investment, investment small amount. Your small amount investment can give you enough return by turning some thousands into lacs but you may be wrong if you invest lacs thinking that you would earn crores. Opposite to above example the share bought at Rs 20 each can also turn to Rs 2000 each, some lucky one enjoys that fruit as well.

3 Choose the right shares and add more money in the same

Building heavy muscles with six-pack abs are not a day tasks, even if you achieved it, managing the same physique requires the same efforts what was involved in creating it, same goes with investment in shares, choosing right shares for investment is building muscles gradually and investing more money in those same shares is like adding six-pack abs. Eating any junk share will convert abs into huge tummy instantly. We know it’s difficult to stay away from aroma and taste of junk food. Eat and be ready to pay the price!

4 Emotion-free investment in share market

In Shakespeare’s drama almost all heroes used to be killed and those drama used to be super-duper hit in the theaters, people get so much emotionally attached to something which has tragic end. Same is in shares, never give so much emotions to any share, the dearest share of yours will have tragic end that should be the thought in mind while investing. Have investment habit emotions-free, remember we are not in the game for entertainment we are for business. falling share price should not trouble you and same time rising price should not create excitement so much that you lose attention in day today activities.

5 Give enough space for shares to rest

You mobile speed will not increase just by increasing RAM size. RAM size will help in switching the apps and doing multiple things at once. Card with good quality and with enough storage space to support speed to read and write is equally important. Switching the shares and buying multiple shares will not increase your earning, you ought to be good memory card with enough storage space for buying shares, that will increase your profit. You need to chew, swallow and digest the shares, have such shares on your plate, have sufficient fund parked for future needs and even for playing safely. Nobody likes returning home with empty pockets right?

These 5 GOLDEN RULES OF INVESTMENT IN STOCK MAKET OR SHARE MARKET FOR BEGINNERS are not enough for investment guide one has to study the business, market condition and nature of product to get whole idea of potential opportunity to buy shares.

Do not jump in investing quickly, one should invest only time initial later comes money to invest.

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Declaimer:

Share trading is subject to market risks, study carefully before you invest in any stock. Investing in stock market would be completely your decision and profits and losses are associated with it. DU Assassins would not be held responsible for profits or losses your incur. The objective is this article is knowledge sharing.