Top 10 Rules Of Investment For Beginners

When it comes to investing in the stock/share market people usually assume that they expect to make a lot of money in a very less time,
that is not how it works usually people who have no idea how the stock market works are very afraid of the risk involved in the market,
so that is why we have come up with the Top 10 Rules Of Investment For Beginners, they are more of tips/tricks than the rules to be considered.

It doesn’t matter either you are a beginner and a person having experience in investing,
we are sure you’ll agree with our points, so below are the top 10 rules of investing for beginners:

 

1. • Attempt to make quick money leads to losing much more:
     People usually tend to make quick money and in a short period of time.
     That is not how the market works it takes a lot of time to understand
     the market variation and expecting a huge return over is a dream nothing else.

 

• • Don’t let the small loss affect your investment plan:
    You cannot always expect that there will profit on your investment every time sometimes
    you have a minor set back, there is always some risk involved in any of the business,
    but don’t let that small setback affect your future investment decision.

 

• • Investing in what’s popular will not always lead you to profit:
    Not all popular stocks always lead to a profit, All the popular brands always create a brand name to attract the customer,
    usually, people who are new to investing enter into these ideas and end up buying the stock without making the proper plan.
    Apart from that popular companies’ stock costs a fortune and it is a risk involving factors to the new investors.

 

• • Let your Winners shine and let your losers go:
    Creating a portfolio is an essential task as there is saying “Don’t keep all your eggs in one basket”
    This means if your invest all your money in one company the are risk of loss is higher,
    by investing in various companies you identify the loss-making stock
    and sell them off and focus on profit-making companies.

 

• • Buy and hold might not be a better strategy all the time:
    Most people assume that the stock will rise one or the other day,
    It doesn’t work in all cases. So they buy certain stock and wait for their uprising,
    Holding to loss-making stock will not just waste your money but time as well.

 

• • A sudden Raising doesn’t mean profit and vice versa:
    If a stock is rising all of a sudden it doesn’t mean it will keep on rising in the future,
    just like a sudden raise there can sudden downfall. So if you are planning to invest in a stock that is suddenly rising in the price of the stock you consider all the risk factors coming along with the investment as well.

 

• • Expert advisor calculates the risk factor:
    A person who has experience in the field of investment for many years,
    who knows how to analyze each and every factor affecting your investment.
    a person who calculates the return on your investment is known as an expert advisor.

 

• • Greed and Fear:
    “Anything in excess is poison” a person should never be in greed or fear,
    If your investment is performing then you should not have greed,
    if your investment is not performing /creates any fluctuation then you should have the fear of losing.

 

• • Don’t hesitate to act when the time is right:
    Sometimes you have to make a hard decision, but you should be ready to do it.
    If feel like it the right time you have to make the decision immediately as per its requirement.

 

• • Be Mindful:
    It is one of the most important lessons “Be Mindful” because you cannot make a decision blindly
    without taking all the factors into consideration.
    Because while making a decision a person should have a calm mind because it will affect his whole investment plan
    for the future.

 

 

Conclusion:
Well, above are the “Top 10 Rules Of Investment For Beginners”  these are more like tips and rules for the beginners,
investors must consider all these aspects before investing.

 

[Learn More investment: The BEST INVESTMENT PLANS For 2021 In India  ]