Like many new investors, you may also decide to invest in a company and pick up your first shares of stock, but your limited knowledge leaves you wondering how to actually do it. Don't worry! First With the money that you could have invested, I suggest buying a few books about investing, finance, economy, or whatever you think might be important.
You should also check out websites like Moneymindz.com and you refer our blogs. Moneymindz.com is a huge repository of information with a ton of guides and concise definitions. Definitely get into that - how to invest in stocks. To be more specific, for you new investors out there, this page was put together to serve as an introductory depository of investment articles designed to get many of the basics out of the way before moving on to some of the more advanced topics which I've written over the past years
If you have no experience, you should buy a few shares of a company that you think has a good business model, will grow over time, and maybe has resistant to the economy. Since you have so few shares, the profits & losses don’t matter at all - so just watch how the stock moves throughout the day and how the company’s competitors are doing.
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Here are some tips –
Save yourself from yourself
Inexperienced investors simply don't have the knowledge, emotional discipline or time to navigate the complex and often volatile world of stocks. New investors usually generate terrible returns because they make a huge amount of easily avoidable mistakes. By offering beginners a hands off #investing experience, Moneymindz -advisors enable you to sit back . Help you to they take the emotion out of investing and save you from one of the biggest obstacles standing in your way. You!
Don’t get confused with financial jargon
There is a particularly poignant scene in the movie English Vinglish where Shashi Godbole (the every woman character played by Sridevi) attempts to order food at a New York cafe and ends up running away in tears.
To me, this encounter is illustrative of the wide chasm between investors and the investment management industry which speaks a different language from its customers. This creates undue stress, leads to poor investment decisions and, more often than not, frightens away prospective investors
Before investing investors should try to learn the financial jargon.
Hold Diversified Portfolio:
An investor can be able to minimize the risk associated with the stock trading by holding a diversified stocks in their portfolio. One can diversify their portfolio in many ways like holding stocks of companies operating in different industries so that even if one industry is down performing other stocks in the portfolio will not be affected.
Understand Your Risk Tolerance
Risk tolerance is a psychological trait that is genetically based, but positively influenced by education, income, and wealth (as these increase, risk tolerance appears to increase slightly) and negatively by age (as one gets older, risk tolerance decreases). Your risk tolerance is how you feel about risk and the degree of anxiety you feel when risk is present. In psychological terms, risk tolerance is defined as “the extent to which a person chooses to risk experiencing a less favorable outcome in the pursuit of a more favorable outcome.” In other words, would you risk $100 to win $1,000? Or $1,000 to win $1,000? All humans vary in their risk tolerance, and there is no “right” balance.
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