Posted By Gbaf News
Posted on March 30, 2012
Do you know why an investor reaps better benefits than another investor? It is because the successful investor has followed certain rules or techniques in order to reach his targets. Therefore, before investing in the stock market, you should always learn these tips.
There is a lot of scope to make profits while investing provided you have done the right thing. Few tips that you could follow are listed below:
- Picking the right stocks: Stock picking is of prime significance while investing. You need to look for company valuations and always try putting your money into large companies; ideally the one’s which are a part of market index.
- Understanding your stock returns: It is has been commonly observed that the transaction volumes received are far less than the one’s depicted during the security purchase. This means that the price rise or fall expected on a particular stock is purely speculative.
- Investing in Gold: Gold market is one particular commodity which has its prices going up all the time. Hence, it is one area an investor can always earn well.
- Time to invest: Whenever you are investing into heavy stocks, it is always recommended to start investing right at the beginning of the new financial year (i.e. April each year).
- Insurance: You can do any kind of investment but always keep insurance in your kitty. Eg., A life cover, health insurance etc.
- Property investment: Think you want to buy a house? Excellent. It is one of the best ways of putting your money into a source which can earn you future profits.
- Portfolio tracking: Keeping a track of your portfolio is good. But the regular you start tracking your portfolio, the more conscious will you become to study its progress, and this in turn can cause you emotional distress.
- Research and analysis: Any decision is always supported by a good planning. Similarly when you want to go for investment it is necessary that you do a thorough research and identify the stock pattern, and if it is insurance identify the right cover is important. You can use internet, read Ben Graham’s stories etc. for a better understanding.
- The right mindset: A good investor needs to have a passion and diligence of dealing with his product. It is important that you have evaluation skills and don’t get influenced often.
- Investment management: A lot of investors put huge sums of money into one particular category predicting a great return. But it is the most risky way of investing. The key to regulate your returns and manage investment risks is to spread your assets and investments across various other investment categories. This minimizes your risk and offers better returns.