Monday, June 9, 2014

Investment in Stock Market – How to Make It Successful?


Stocks are representation of the partial ownership of a company. It is easy to earn well if we understand the market movement at present and in future. There are several people who are making millions by investing into the share market. ‘How to invest in Stocks’ is a question asked by many youngsters. Many people are making huge sums of money by investing electronically through Internet. Stock market is also a good option for making money. But many beginners do not know how to invest and where to invest. 

It is very important to have enough money in your account for leading your life. At least the bank balance of six to twelve months without salary should be tolerated without stress. The rest of the money can be used for the investment. Without enough money to support your family, investment will become a great burden. Then you have to start from the basics of stocks. It is important to read a lot about stocks to learn about stock market trends. There are many books available in the shops as bibles of stock market.

It is better to practice for a year with virtual money than with your real money on stock market trading. It is easy to write down all the trades and the dates on a paper. The profit, loss, and other important things related to market movement should be recorded at least for a year to understand the trend. Then open an account for stock investment with the help of a broker. The brokers have to be selected with careful analysis. The commissions and other fees should be discussed well before we open the account. Some people may charge even 1 to 10 USD per trade. Study the companies you are interested in to invest. A long list of such companies is also available at Bidnessetc.com. The company should be reliable and should have excellent past records in payment and EPS etc. At least 10 years of records are reliable. You must then make up your mind to invest in it. Holding the stocks for longer run will give more profits. The dividends will be in your account for every year. At least 5-10 years is recommended. Regular investment in the right time will be a good investment. The investment should be regular and systematic. It is good to keep a certain amount to invest in stocks. Even if it is going down the history shows the stock market can bounce back. So without disturbing it is better to keep the stocks piling for years.

Use your knowledge in investment. Do not trust the ideas of media, magazine and other experts in this field. It is better to believe in your own strength in investing. Set your limits for the selling of each stock. Then keep them up for selling when it reaches the value. If necessary or in emergency

situation we can consult the financial consultant in investment or selling the stocks.

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