Lets see what this perception lead to.....
- Is it all about making money in an gambling environment !
- Is it a place to get swindled of all your money deposits !
- Is it a place to showcase your strategy skills !
- Is it a place to learn the trading skills !
until the expertise gained by our peers are not shared with the newcomers entering into the share market.
Hence an amateur investor is unaware about the various do's & don'ts of investing in a stock market.
So Lets explore them.
1) Understand the difference between trading & investing.
2) Trading is frequent buying and selling of shares, commodities, F&O etc…
3) Investing is buying value stocks of growth companies & holding them over a period of time.
4) Avoid trying your hand in F&O (Futures and options) segment unless you are in a sound frame of mind. Since the risk of depleting your saved or earned money is higher in F&O segment.
5) Avoid Intra day trading based on random speculation as announced in open forum. Also with intraday trading ,continuous monitoring of scrip price has to be followed which would increase your mental stress……
6) Avoid Commodity trading unless you are strong in essential goods speculation.
7) Avoid margin trading; it is like taking loan from your brokerage firm for buying shares more than your prescribed limit.
8) Do your home work before investing in a particular stock such as studying and analyzing the balance sheet, profit & loss statement and cash flow statement.
The fine-print of investing in share market is to create wealth over a long-term and not to lose money overnight by falling in the trap of trading.
Thus Stocks are assets which can exponentially add to your wealth creation !!!
Hence an amateur investor is unaware about the various do's & don'ts of investing in a stock market.
So Lets explore them.
1) Understand the difference between trading & investing.
2) Trading is frequent buying and selling of shares, commodities, F&O etc…
3) Investing is buying value stocks of growth companies & holding them over a period of time.
4) Avoid trying your hand in F&O (Futures and options) segment unless you are in a sound frame of mind. Since the risk of depleting your saved or earned money is higher in F&O segment.
5) Avoid Intra day trading based on random speculation as announced in open forum. Also with intraday trading ,continuous monitoring of scrip price has to be followed which would increase your mental stress……
6) Avoid Commodity trading unless you are strong in essential goods speculation.
7) Avoid margin trading; it is like taking loan from your brokerage firm for buying shares more than your prescribed limit.
8) Do your home work before investing in a particular stock such as studying and analyzing the balance sheet, profit & loss statement and cash flow statement.
The fine-print of investing in share market is to create wealth over a long-term and not to lose money overnight by falling in the trap of trading.
Thus Stocks are assets which can exponentially add to your wealth creation !!!
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