Tathastu Buddy
Making money or investing is a serious biz, yet simple. Investing in stocks is all about investing wisely and making money is simple provided you strictly follow the do’s and dont’s of the stock market investing :
1. Make investing a Habit :
Let your money work for you even when you’re not! Invest consistently! Many people get excited and enter the markets when the markets are high and doing well, i.e. bull market and they exit in bear markets i.e. when the markets fall. The goons of the market say, invest/buy when there is blood on the street ( Dalal street) that is when there is panic selling and downfall in the market.
2. Don’t misunderstand investing in stocks as gambling :
Investing in stocks is backed by detailed study, research, observations, analysis and it’s all about calculated risks as against gambling which is baseless.
3. Invest your time before investing your money :
Learning doesn’t necessarily mean having a formal degree but self-education, that is, skimming the tons of free info available on the internet which you can access to learn the markets.
4. Starting small :
Invest in small sums no matter what! One must save a part of their earnings and should invest wisely and then gradually increase the investment as you get more knowledge and confidence! Invest only the surplus in your hands, that is, the money which, if lost, will not affect your lifestyle. It is strictly not advisable to leverage your investments which might give you nightmares in case of market fall. Your investments will work only if it is not accompanied by mental stress.
5. Make a diversified portfolio of stocks and more importantly avoid stocks of related or inter-dependent industry. Don’t put all your money in one or just a few stocks. Have patience and invest with a long term view, that is, a min of 12-18 months.
6.Be practical and don’t have unrealistic expectations from the markets. As I said it’s not gambling!
