Investment in Stock trading is not a child play, stock trading is a gamble. It takes lot of efforts and research. As a new investor you have to follow certain protocol while doing trading. There are lots of advantages of stock trading; you can earn bigger profit, if it will be done accurately.
There are certain rules in stock market which you cannot be challenge or denied. Let’s take a look what are the top 10 tips which must follow by the new investors.
Account is the basic step you need when you start trading in stock. Now it will depend which account you need. You need to find best broker to open an account, you can search online or you can approach to any broker directly. Suppose, if you want to trade in IPO then DEMAT account is enough. There is difference between trading account and DEMAT. You can open both account.
Collect information by reading books, articles. Books are the best way to get information about the stock trading. It also inexpensive compare to other medium of sources. Books are wealthy medium of information. There are many books available in market which you can purchase and read.
- Articles and Tips
Articles are the amazing source of information you can read wherever you want. There is countless website where you get information about stock trading. Articles are the best way of learning about any things.
- Understanding the risk
In stock market risk taking capability is depending upon your psychological trait, risk is genetically based, it can be positively impact on education, income and wealth, has by these thing it can increase slightly and it can decreases negatively by age, as one will older there risk taking capability is decrease. Risk taking capability is also affect the perception.
- Take help of any advisory company or mentor
It’s not a shame to take a help of any advisory company, as you are in a beginning phase you should take help of any advisory company or who is expert in this field. A mentor can be your friend, family member or any professor who has a fundamental understanding of stock market. A good mentor or advisory firm willing to take your all question and provide a meaningful answer and can help you to every stage.
Control your emotion this is very big huddle in stock market which you need to take care of it. One should control their emotion and take every decision logically not emotionally. Stock trading for beginners must invest only a small amount of capital. Therefore, if there are any losses in the beginning at least your trading sprit will not be fallen.
A person feels negative about stock market then it is called bear and it he or she feels positive about market then it is called bull. As you can see the fight between the two in the trading hours as prices of stock keeps on changing.
- Do not go for hot tips
If tips were coming from your brother, your colleague or your advisory company or broker, do not except it unless you are sure may it is not true. If you are doing any investment you have a solid reason to do that, you have to do your own research and analysis, before doing any investment in that company. You have to know their financial statement of last five year and also check their debt which could not be more than their asset or profit.
- Small investment
Buy small stock so when there is fluctuation in the market, do not panic aim for the bigger picture may be this fluctuation is for short- term. When you are doing tracking of your investment always see the bigger things and do not nervous about the inevitable volatility of the short term.
- Don’t thing too much about price-to-earnings ratio(P/E)
Price-to-earnings ratio is the ratio that measure the current share price of that company to it’s per sharing earning price. Many investors at beginning phase take too much serious about this ratio because it is one of the key tools among many, depending upon this ratio and do buy and sell may be dangerous or it is not advisable. The P/E ratio should be important but it will used with other analytical process. A low P/E ratio does not mean your security is low value or high P/E ratio doesn’t mean high value.
- Stick with your strategy or plan
There are many people and there are many different methods to fulfill your investment goal and become a successful investor. But you should find your own style of trading and you should stick with that style only do not follow the other copy the other style or strategy of investing. Any investors who swim between the two strategies will defiantly drove.
If you want to start trading then you can start by yourself or you can take help of any advisory company. Generally I prefer BAZAAR TRADING, form their advice I earn bigger profit, they provide the best technical and fundamental analysis in stock trading and commodity from experts.