The stock market has been growing rapidly since November last year. But new investors are coming in to start moving at a normal pace. However, most new investors invest unknowingly. As a result, after losing money, the market turned away again. Therefore, investors need to know some of the basics of investing in stocks first. The temptation to make huge sums of money in the stock market always throws the investor to the brink. Making money in the stock market is not an easy task. In addition to patience and discipline, a lot of research and understanding of the market is also required. Several times the market collapse has left investors in a quandary. In this situation, they are in a dilemma, do not invest, do not hold shares or sell. However, no effective formula has been found for success in the market. But there are some golden rules that if you follow them wisely, you are more likely to benefit.
- Avoid childish mentality: Traditional shoppers usually make decisions based on the activities of friends, neighbors, relatives. Thus everyone around him invests in a specific sector. Then potential investors do the same. But this strategy ultimately suffers him. The childish mentality should not always be discarded. Unless you have a hard time investing in the stock market. Warren Buffett, the world’s largest investor, said, “Be careful when everyone else is greedy and be greedy when everyone is afraid to invest.”
- Make an informed decision: Learn a lot before deciding to invest in the capital market. But investors do very little. Investors invest in companies they know about. However, pouring money into the market in this way is not the right method.
- Invest in the sector you understand: Never invest in the capital market instead of doing business. In other words, find out what the company you are going to invest in does business with. Diversification of the investment field is the main way to earn the desired money with the lowest level of risk by examining the type and component of the asset. The level of diversification depends on each investor’s ability to take risks. Exclude planning on market prices, even Warren Buffett has said so. Its normal, market price range does not make people interested in investing. But most investors think the opposite. Financial planners have suggested changing this perception. Because of this misconception, they throw the meaning of suffering into the water.
- Follow the disciplined investment method: It is said that short-term panic prevails among investors when the market is in a massive upswing. This fragility in the market forces investors to face financial losses despite massive price increases. However, investors who systematically invest money in the right shares and hold on to the shares have been found to have made huge profits in the past.
- Don’t let emotions overwhelm you, keep in mind: many investors lose money in the capital market because of their inability to control emotions, especially fear and greed. It is difficult to hold the greed of temporary huge wealth in the fast market. The story of someone’s finger becoming a banana plant increases the greed of investors. This tendency creates a bubble among investors and forces them to buy shares of unknown companies or they simply take a position without realizing the risk. If the market shows the opposite picture, instead of creating wealth, they have to face the attitude of burning their fingers in the fire. On the other hand, in the fall market they sell shares at a one-time blow out of panic. Thus fear and greed create a weak mentality among them. They do not follow the instructions of market experts.