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
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