Nowdays investing in stock market is one of the best source of income.
About 18 million people in India are investing in stock market on a regular basis which yields them a good income.
So,here are some of the points you should keep in mind whe investing in stock market.
First ,it should be clear in your mind that what you wants from stock market. It means what your fundamental needs for investing in liquidity market.
Time frame you have in hand to earn positive returns.
You can afford risk or not?
These are some basic things you need to know.
Research on field in which you are investing.
You must have the basic understanding of the product,sector and assest in which you are investing.You should always invest in those companies and sectors which have a good reputation and can give a high yield.
Research yourself as it will gives you self confidence and never rely on a third party.
Always look at the stock worth before investing.
It is crucial to understand that the stocks of a particular company are valuable enough to invest on.
For this,you have to research about the estimated earning of the company you are going to invest on and their recent plans.
Don’t put money in only one sector rather than rationalise your money.
People generally prefer those sectors which gave a higher profit in very less time.
The ideal thing is you should invest in different companies rather than one .So that if one stock is not doing well ,the others will doing good job for you.
Thus ,you will always in a safer zone
Liquidity should be kept in mind.
Liquidity is the top factor to be kept in mind as a young investor.
In normal terms, liquidity means how fast you can turn your stocks into cash.
In case if you invest in wrong trades,it will help you to get out of it much faster.
At last,being patient and never rushing attitude will lead to a long way.