72 Stock Market
Investing Tips
Why do so many investments fall through cracks? Experts
blame everything from lack of information to wrong strategy and over-confidence
about the swings in the market. Here, thereby, are 72 tips that may get you
find the tracks of investments.
1. Determine
your objectives in terms of short and long term.
2. Once the
objectives are finalized, seek towards the type on investments to buy.
3. Calculate
the level of risk to withstand it.
4. Determine
where you stand in terms of needs and goals.
5. Make sure
you have time to follow through your commitments.
6. Be
consistent and organized. Make thorough efforts in whatever you do.
7. Be open
to all the new thoughts and get out the myths of your bag.
8. Develop
your own plans and play your own games.
9. Access
quality investment information available at internet.
10. Diversify
your knowledge and investments plans to various channels.
11. Making
decision to buy or sell, stock, futures or options under pressure may turn out
to be disasters. Never feel pressurized at any time.
12. Try to
reduce risks, as far as possible.
13. Follow the
2% rule, i.e. never risk more that 2% of your trading capital on a single
trade.
14. Always use
stop loss orders to protect capital whenever you make trade.
15. Never
overtrade with under-capitalized accounts.
16. Move your
stop loss to lock the profit in as soon as the deal gets profitable.
17. Be a tail
to the trade trend. Trading against trend without reasonable stops may harm a
lot.
18. When you
are unsure of the fluctuations of the market, it is useless to trade. Rather
quitting is a smart move at that time.
19. Avoid
stagnant and volatile markets.
20. It is
beneficial to trade in a market that is trending with a volume of more than
100,000 daily.
21. Do not put
all your profits in re-investments. Rather it is highly recommended to save
profits and have a surplus account.
22. Develop
strategies and financial plans and work on other alternatives of investments.
23. Always be
well informed through the sources available.
24. Watch
financial market news to help you to get through the moods of market.
25. Never run
after tips. Refer them and use your own brains.
26. Invest in
long-term investments, as there are greater chances of getting better returns
in long term.
27. Short-term
market being too fluctuating may cause severe problems to the one.
28. Evaluate
your investments well.
29. State
those in objective terms hat are easy to use for future reference.
30. A
well-researched and well-done valuation is timeless.
31. Ask for
help of your broker or a fundamental analyst.
32. Always go
for a thorough research work before getting into the investment world.
33. Evaluate
and analyze your decisions well in future to avoid repetition of same mistakes.
34. Select an
intelligent broker and use his experience to fetch better returns.
35. Always
seek for cheap brokerage firm but do not compromise on the quality of services
provided by them.
36. Grab the
opportunities of discount brokers.
37. When
investing online, remember that online bets are not always instant.
38. It may get
delayed due to heavy traffic on net or so.
39. Other
technological faults like modem, computer and service provider may also act as
a hindrance to your investment.
40. While
investing in share market always set your price limits on fast moving stocks.
41. Market
order vs. limit orders rule must be followed.
42. In case
you are not able to access your online account get alternative for placing
trade in advance.
43. Take time
and do not assume that your order has not been placed. It may cause repetition
of your order and hence, may fetch you losses.
44. Make sure
the cancellation of order has worked before ordering another trade.
45. If you
purchase a security in cash account, you must pay for it before you can sell
it.
46. Reread
your margin agreement, as if you trade on margin, your broker can sell your
securities without giving a margin call.
47. Get to
know about the legal terms.
48. Talk to
your broker and online firm in case of some misunderstanding in investing.
49. Know what
you are buying and risking in the market.
50. Bernard
Baruch once said that "If you want to make money, big money, buy that
which is being thrown away."
51. Do your
research before making investment.
52. Be alert
for any alarms of losses.
53. Do not
expect your broker to recommend the stock that may double your money in few
months itself.
54. Don't be
greedy and sell the stock that goes up considerably i.e. 50% or more.
55. Don't be
impulsive and take calculated risks.
56. Don't buy
a stock on a hot rumor; you'll get burned 90% of the time.
57. Consider
tax-planning and income-splitting techniques.
58. Go for
values of stocks.
59. Maintain a
well-evaluated portfolio.
60. Keep an
eye everywhere. Look for bonds of the companies that are out of favor too.
61. Be an
above average trader.
62. Prepare a
checklist for investment.
63. Make sure
that the money you are investing is vital to your financial survival.
64. Beware of
the internet stock fraud.
65. Verify
your investment i.e. do not just rely on your broker, ask other advices too.
66. Every time
you invest, assess the risk/return profile of your investment before actually
committing to it.
67. Also, pay
attention to how easily the investment can be turned back into cash, just in
case.
68. Compare
and contrast stock trading options available with other options.
69. It is also
important to ascertain one's risk appetite.
70. Make sure
you follow some precautions before investing, like make sure that your broker
is registered and not a fraud.
71. Make sure
stock trading documentation is in order.
72. Remember
the stock investment can be risky like any other investment; thus, evaluate the
risks associated to a particular move.
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