Your Recipe ……
As a young teenager who yearns to earn money in easier and a faster way,,I never thought the stock market
could be the best place,,but when I saw ppl doubling and tripling their money overnight seeing tht my mind said ,WHY CAN,T I??? Then I decided to go for it ,but hey hey hey,,then I realized ,it is not as easy as it looks ,so b4 plunging into stock market a through planning analysis shld be done ,, SO BELOW I HAVE POINTED OUT SOME RULES OF INVESTING IN STOCK MARKET THE RULES ARE AS FOLLOWS :
FIRST RULE……..It would be fallacy to treat stock market as a casino. If u move in or out of stock every time they dip a point or two ,the market will be ur casino and u may lose eventually or frequently
Second rule is ………we need to keep in mind tht ultimately it is the stock tht determines the market not the vise versa. Buy the individual stock not the economic outlook or the market trend.
Third rule is………….NEVER buy cheaply priced
shares as they will fetch u low
profits.
Fourth rule is………..never follow the crowd .if u buy same securities as others then u will have the same results as others ,it is impossible to produce superior performance.so buy when others are desperately selling and sell when others are greedily buying it.
Fifth rule is………..update urself with the companys profile and networth to know its performance ,and if the progress of the company is self satisfactory then buy those shares even if they are cheaply priced. For eg…L&T shares were priced at rs 2 in 1980 but now its at rs 2500
Sixth rule is………do unusual thing to get a bargain price of the share…like buy those shares in which public is more scared and frightened and u ur self are a bit scared .
Seventh rule is…….there is no free lunch .never act on sentiments. Don’t rely tips.u have to work hard for ur profits, the more ur confident abt a company the more it helps u to make huge profits.
Eighth rule is…….aggresively moniter ur investment .remember no investment is for ever expect and react to change .being relaxed does not mean being complacent.
Ninth rule is….learn from mistakes and the only way to them is not to invest which is bigger of all. forgiving ur self for ur errors certainly don’t try to recoup ur losses by taking bigger risk,,instead turn ur loss into ur learning experiences.
And Finally WE need to get deeply into our bones the sense tht any market moves in cycle so tht u will infallibly get wonderful bargains every year and have chance sell again at ridiculously high prices a few year later.