3 important things you must know and follow as an new investor!
You need to KNOW some “unforgettable
basics” before you
enter the world of investing in stocks. The stock market is a field
dominated by savvy investors who know the ins-and-outs of the market.
For people who are not “on the inside”, the stock
market
can be a VERY dangerous place. :
Don't even
consider "tips" that tell you about "hot stocks". Consider the source:
There are many people in the market who put in all their time and
effort in promoting certain stocks. They do this because they have
their money invested in those stocks. If they can get enough people to
buy the stock and they can get the stock price to rise, they will sell
the stock for a huge price, the stock price will crash and they will
walk off to promote another stock.
Always use your
own brain:
It's extremely important. You must always use your own brain. Relying
on the advice of others, no matter how well intentioned it may be, is
almost always a complete disaster. Make sure you dig in and really
examine the "facts about the companies" before you invest. Ignore press
releases which have very little substance, and rely on "hype" to tell
the company's story.
And finally the
most important tip!!!
Only invest money you can afford to lose!! Sure this is a basic point,
but many many people miss it. You should only invest money that you can
honestly afford to lose!! Everyone enters into investments with
the idea of earning big profits, but in many cases, this never
works. (Especially if you are new to investing in the stock market!)
Please understand that the above tips are tips for beginners. Once you
really get into the stock market you do not need to follow these rules
anymore. But if you are a new investor, you MUST follow these rules.
They are for your own safety.
But then again, nothing comes free. Everything has a price. You will
have to loose some money, make some bad decisions and then only will
you really understand the market. You cannot understand the market by
just looking at it from far. By following these rules, you will
basically not loose too much!
Next - How to decide which stocks to buy? >>
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Table Of Contents
- What are stocks?
- Why do companies issue stocks?
- What causes stock prices to change?
- What are the Sensex and the Nifty?
- 3 important things that every investor MUST remember!!
- How to decide which stocks to buy?
- Basics of fundamental analysis!
- Earnings
per share (EPS) ratio and what it means?
- Price
to earnings (P/E) ratio and what it means?
- PEG
ratio and what it means?
- Inflation
and how it silently eats your money!
- Brokerage and taxation…