Thursday 19 June 2014

Things to Keep in Mind Before Investing in Stock Market

Investing in Stock Market is always considered very difficult job by the people, since it has lots of risk and investing acumen at stake, One thing is sure that no Stock market investment companies can give guarantee of their investing tips so at last it comes to ones own self to analyse the market and gain from it.

Always remember no analyst/investment advice company can give guarantee returns, that is they simply can't work without the disclaimers which they attach along with their websites or otherwise.

So here are probably 50 best investing tips for a layman who wants to start investing in stock markets without fail...I SAID WITHOUT FAIL !!

1. Do not buy a stock without examining the financial health of the company from atleast last 3-4 years(most of the companies which provide stock advice often do not follow this important tip because it needs lots of analysis and acumen which except Warren Buffett no body can provide.

2. Go for a good and professional help so that you can be guided about the market (also check that there are lots of such fake professionals around today so choose a genuine one for investing your hard money (only in case you don't have time for analysis or mental acumen to do so...only if you are a dumb).

3. Never buy a stock without knowing its business and who its competitor is - If the competitor is too big and authoritative (have good political relations) then be away from such small cos.

4. Follow the leaders of an industry so that you can get good knowledge of the market - Examine and analyse functioning of such company from last five years atleast for a long term investment.

5. Do not guess the futures of Indian stock markets as they are very volatile just have a terrific analysis acumen.

6. Never buy stocks when market indexes are in up-trend because chances of loosing are too high because such trends are often made by brokers but actual fundamentals of that company are too weak.

7. Try to wait until the stock market has clearly turned around. - That wait can be everlasting though due to volatility.

8. Always make your decision to buy the top companies of industries (when their stock is undervalued).

9. Make it a point to buy companies with new products or services (companies which are very innovative in approach) and mind it very few Indian cos fall in this list as all are copy cats or inspired by some other company.

10. Make sure that you buy stocks that are expanding in the stock market (this requires analysis of that company from very basic).

11. Try to determine whether large or small caps are favored in the stock market.

12. The earnings should be growing from last 2-3 years for that company.

13. Try to invest in companies that have high experienced management (because they would know techniques how to prohibit other cos to come at power).

14. Make decisions after you are fully confident by the findings of your analysis about a company.

15. Do not be impatient (apply wait and analyse philosophy).

16. Be a long time investor for better returns.

17. Go for a good broker (and who can negotiate for commission).

18. Set a strict budget (never go to purchase stocks beyond your financial limits because that can be very devastating).

19. Set your goals.

20. be always optimistic about your approach.

21. Aim higher and i am sure you will achieve it.

22. Try to minimize risk (strong analysis skill required again).

23. Maintain market records - for atleast last three years for the stock in which you want to invest.

24. Do not be greedy.

25. Act wise.

26. Think more.

27. Make a research.

28. Understand the value which a stock can deliver.

29. Know about NSE and BSE, and working of stock markets too

30. Buy fixed income securities as these are the best bets.

31. Minimize risk.

32. Try to spend less.

33. Enjoy open communication - on any stock market forum.

34. Keep track of records.

35. Ask for latest updates about your favorite stock.

36. Beware of fraud brokers- mind it there are many on net or outside.

37. Set yourself on win-win situations.

38. have some basic stock investing tips (this post fulfills your this tip).

39. Never average down - mediocre stocks have no life.

40. Pay attention to real estate - but this is highly volatile market.

41. Avoid fraud email links, stock market tricks, websites without disclaimers are fraud for sure.

42. Set your objectives higher.

43. Do not give any credit card details even to the brokers present online.

44. Never be disappointed - (remember profit and loss are two sides of a coin).

45. Listen to stock news - important if you are going to make short term investment instead of long term.

46. Follow these evergreen investment tips.

47. Consult experienced stock market consultant.

48. Have faith in your hired technical or fundamental analysts (provided he/she high caliber and tremendous analytical skills required for reading face of a company from stock value)

49. Do not overextend your budget - last but a very very basic one for all.

So here I finish my typing and hope that you will definitely gain from these tips and spread a word. If you think your tips should also be included here please leave a comment.

HAPPY TRADING!!

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