You finished your academics, and now having a comfortable but struggling job, and have little extra funds and are planning to save for your car or a home or started building for an adequate retirement fund.
When looking for investments for your dream car or house or anything, one has too many options and young people often get confused, where to begin and how to begin, because some investments are often too complex and difficult to understand.
If you have decided to invest in stock market, there are certain things that you should keep in mind
- Learn about investing
To learn more and more about investing best friend is reading and knowledge gaining. There are numerous books, magazines, periodicals which are focused on the share market. There are books available written by distinguished authors. Articles also appear in business newspapers and magazines.
You can also ask for advice from successful traders. Their view, opinion, their calculations, and observations. Gaining knowledge is the best form of protecting your hard earned money. There are benefits of intraday trading.
- Opening account with established brokerage firm
Open trading and demat account with brokerage firms which have vast experience. They offer trading tools like candlestick analysis, stock screeners etc. so that you can filter out good stocks form not well-performing stocks. The fundamental and technical analysis also helps you in segregating good, better and best stocks. Brokers get company news much before it spreads inthe market, which gives you an added advantage. Better take an overview of Indian stock market before opening an account.
- Control your emotions
One should think of gain/loss in stocks from a logical point of view and not from an emotional point. It is your business and should be respected and treated as one, emotions should be kept on the backburner. There are many traders who cannot control greed. They expect that the share prices, which they hold, to keep on rising forever which in reality is impossible. One should not stick unnecessarily to shares which are non or underperforming. You can make money in Indian stock market provided you “play” with brain and not the heart.
- Certified financial planner
Do not take your investments decisions from any Tom Dick and Harry. They can be anyone who has the least knowledge about share market dynamics. They can be your friends, family member or anyone. Remember it is your hard earned money and you cannot afford it to jeopardize your investment plan. And later tell you “I told you . . . . “ and wash his hands off. Better take help of a certified financial planner, who knows when to enter and exit the market. Which shares to hold, which to buy, which to sell depending on market conditions? You can also join best share market training institute and gain knowledge.
- Investment amount
This is one of the most important decisions to take. How much amount one is having as surplus and how much to invest? You should keep a certain amount for unforeseen future needs. If you don’t plan properly then when some funds are needed for the emergency purpose, you may have to sell shares, for a loss, if the market is in correction mode at that time, and you intended to hold it for a longer period. Stock market investment tips can be had from reputed and registered firms with SEBI on the official website.