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POSTED BY ON September 26, 2010 8:07 pm COMMENTS (3)
As a new comer, What are the key points to keep in mind while entering the Stock Market
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@prasad
Bear one thing in mind – Long term value investing triumphs against all other forms of investing. If you are looking for long term investment in equity market, I would suggest following blog for the beginners to learn about stock investing.
http://www.shyamscolumn.com/ – This blog is the collection of back articles written by the author in the column ‘FISCALLY FIT’ in The Hindu- Sunday Magazine. There will be only one or two update monthly but it will be of high quality.
you will be best served if you turn off all the noises in the business channels and stock brokers reccomendations.
Happy investing 🙂
Welcome to the club.
Key points to remember are completely based on kind of trading you want do here.
There different types here, such as Day trading, short term investor and long term investor.
1. Start with opening a demat account for all the above options. Choose the one who provides cheapest brokerage as well as best interface (either online or offline). If they also provide you calls when to buy and sell it would be an added advantage (now a days all the providers are offering this.
2. Be cautious about your enthusiasm. As a new comer, couple of profit trades make you attracted to this and makes aggressive. Keep a watch on it and remind yourself that it is dangerous.
3. Dont fall on a call blindly. Do your own research on the stock about its fundamentals its future growth as well try to find as much information as you can about the stock. Finally take your call based on your fiindings.
4. Dont push lot of cash at a time. Invest slowly and steadily. Always keep buffer for averaging.
5. Dont be greedy. Sell when your target achieved, dont think that it will go up more and you will sell it there, it may come down very fast too.
6. Always keep stop-loss. This is applicable only for day trading and short term investing only. Stop loss is keeping lower price sell call for a stock at where you will sell it with loss. This is to avoid more loss in it. This is a tough decision but you have to take it.
7. Get your knowledge from reading articles on internet about stock market as much as you can.
All this is from my personal experience.
If you’re a beginner, invest some money in equity diversified mutual fund via SIP. Read business newspaper & watch business channels. Monitor your funds regularly & don’t even think of investing in stock market directly till you get knowledge of fundamental & technical knowledge of stock market.
Hope it will help you.
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