Lately, People have started giving attention to the Stock market because of the false or rather superficial rate of returns which are marketed throughout media sources. This is done only to attract a huge crowd of earning people and lure them into this money business. Majority of the people invest blindly and then get devastated on realising what has happened to all their money.
Investing is a plan, not a product.
Let's say you plan to invest in Stock market When you finalise on one piece of property, you also finalise factors like
How much are you willing to pay?
Would you buy the stock right now?
What is the exit strategy (holding long term or sell in 6 months?)
Does the investment fit in with your overall plan/goal?
It took me a while to get this, but it is really empowering to understand this principle. It is wise to divide investing in 3 plans.
Plan to be secure
Plan to be comfortable
Plan to be rich
For someone looking on how to invest money in share market, this may help.
- Start with reading News channels, Editorials and do read the Moneymindz blog.
- Apps such as, Financial Freedom give you a good piece ADVICE BY EXPERTS off the market scenario
- Never follow the script suggestion of unheard companies which are provided on TV, they are mostly paid news
- When you think you have gained sufficient knowledge, try to experiment with a certain amount of money which you are not afraid to loose
- Take a note, I said to experiment and not to invest, Once you gain any profits out of your experiment then think of investing with a small amount every month.
- Initially for few months focus only on Equities, consider a sector and start finding out the future prospects of that respective sector, Classify the companies within that sector according to the brand value and its customer reach and then segregate accordingly.
- Always remember “Good quality stocks will always give you a good return, even if they look pricey”
PRO-TIP: Once you enter the world of stock market you will get suggestions from many people to invest in Penny Stocks rather than established Companies, People will claim that these Penny Stocks will become Multi-Baggers within few years and will give you say 10x returns or even more. But remember a fact “An Egg can either get hatched or get fried, But a Baby Elephant will always grow up to be an Elephant”
Want to Know Earn money through Stock market?
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