Stock market can be a life-changing place. If you are able to find the best stocks to invest in, and more importantly invest sizeable portion of your investible surplus in such stocks, then you can create enormous amounts of wealth.
But that is easier said than done. More so for those who are just starting their journeys to invest in stocks?
So let’s discuss few important things that new investors experience:
1 – It’s not a One-Direction Journey
Irrespective of how markets have done in recent past, they are destined to be volatile and can go in both directions – up and down. Many newcomers commit the mistake of exiting the markets just after experiencing few initial losses. As a new investor, you should remember that it’s normal for markets to rise and fall and for the long term investments, this volatility does not matter.
2 – Have the Right Investment Goals
Do not try to beat everyone in the markets. Invest in stocks with reasonable expectations and in line with your risk appetite, financial profile and financial goals. Taking an approach that is aligned with ‘your individual goals and risk profile’ will help you stick with the chosen approach for longer.
3 – Focus on the Correct Strategy
At start, you are sure to be fascinated by stories of people doubling their money in few weeks or even days. But such stories are rare and exaggerated. In reality, long term investing works better than short term trading. Chances of losses in short term are higher. So stick with an approach that has a higher chance of success and which focuses primarily on best stocks to invest in….
4- Stay away from Tips, Derivatives and Day Trading
All these are approaches to make quick profits from market fluctuations. But in long run, most traders following these approaches lose. It’s better to focus on long term and only invest in stocks of fundamentally sound companies, after doing thorough research and analysis.
5 – Don’t be Emotional
As a new investor, you will experience a lot of emotions due to fluctuating stock prices. But don’t let your emotions control you. Don’t sell just because a stock is falling and you are feeling bad. Don’t buy just because everyone else is buying. Your buy and sell decisions should be based on sound strategy and not your emotions.
6 – Review your Investments Regularly
Not all your stock picks will do well. Sometimes, you will have to sell those that are not doing well and replace them with companies having better growth prospects. So reviewing your investments regularly is necessary.
7 – Have Patience
Creating wealth by investing in stocks take time. So unless you are patient, you will be unable to stick with a strategy for long enough. So don’t expect magnificent results from first day. At times, you may lose money too. But have patience and persist with a long-term view.
8 – Start small
Since you are just starting, take baby steps into equity markets. As your learning and experience grow, you can commit larger sums of money.
9 – Find the Right Advisor
A right investment advisor can handhold you during initial investments. Right advice (about best stocks to invest in) at the right time has the potential to help you invest profitably.
Research & Ranking