Basic Understanding of Stock Market

  1. Enter the stock market only if you want to invest.
  2. Don’t follow blind advices. Research yourself and find the stocks where you want to invest your money in.
  3. Start small. Don’t go around buying massive amount of stocks immediately. Buy maximum 5 or 10 in the beginning.
  4. Be regular. You can’t just buy stocks and leave it the way it is waiting for it to magically double up. You have to keep a track of the market and study the trends carefully.
  5. Don’t attach your emotional feelings to any particular stocks or companies because if the company’s trend isn’t going well then you won’t be able to part from it.
  6. Analyze both the fundamental and technical aspect of stock market.
  7. Try to engage in variety of stocks i.e. stocks from several type of industries and not just one single industry. So if one industry suffers, you will have others to rely on.
  8. Don’t invest all your life savings to it. If you are young then invest 90% of your earnings in stock market and other alternatives and take the remaining 10% for your expenditure. And as you grow old spend more and invest less.
  9. Don’t just follow the herd. Go with what you feel is right.
  10. It’s okay if you incur some loss initially. you just have to be patient with yourself and understand that learning takes time.

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