Things to know before Diving into Share Market

[Tarun_Shetty]

If you are thinking of investments that could beat inflation and also give you good returns, one option might be to start investing in the stock market. If you have decided to do the same and go for it all by yourself, it’s not a bad idea. The stock market, when properly understood, can help you make a lot of money, but you can also lose all your money if you are tempted to invest randomly without knowing the nitty-gritty of the market.
Therefore, there are a few things you must know before you dive into the share market. Here they go:

• Never jump blindly into stock markets
• The stock market is not a money-making machine
• Educate yourself, handle basics first
• Invest only your surplus funds
• Avoid Leverage
• Avoid herd mentality
• Diversify, but refrain from over-diversification
• Don’t try to time the market, follow a disciplined investment approach
• Don’t let emotions impact your investment Have realistic expectations

 

[Logical Trader]

You are absolutely right!
Understanding your risk taking capability is also very important before investing in the share market.

 

[DreamDeal]

These are very good tips for every trader and should be kept in mind.

 

[Soh325R]

Before diving into the share market dive into the books that are related to the stock market. I also used to read these when starting with a trade in the stock market. Carefully understand the concepts and try to trade on any mock trading platform. Then start your trade with buying single less valued stock. For me, less valued stocks do not bring fear of losing money and help me to remain confident.

 

[Awasti_trader]

Thanks for sharing all these points.
Quite helpful, especially for beginners.

 

[Train To Trade]

If you are thinking of investments that could beat inflation and also give you good returns, one option might be to start investing in the stock market. If you have decided to do the same and go for it all by yourself, it’s not a bad idea. The stock market, when properly understood, can help you make a lot of money, but you can also lose all your money if you are tempted to invest randomly without knowing the nitty-gritty of the market.
Therefore, there are a few things you must know before you dive into the share market. Here they go:

• Never jump blindly into stock markets
• The stock market is not a money-making machine
• Educate yourself, handle basics first
• Invest only your surplus funds
• Avoid Leverage
• Avoid herd mentality
• Diversify, but refrain from over-diversification
• Don’t try to time the market, follow a disciplined investment approach
• Don’t let emotions impact your investment Have realistic expectations

You have really provided us with useful content. I do believe that discipline is the most important factor a trader should have, it helps in building a strong trading mindset which ultimately leads to more profits.

 

[crazyforstocks]

Along with all these poins metioned above, it is also important to understand your financial goals and risk appetite.

 

[tradinghabits]

Learn to avoid emotion driven investment decisions and try diversify your investments across market capitalization, sectors and geographies. And never ever mix stock investing with gambling.

 

[neontarder]

Emotions are the biggest enemy of any trader.

• Greed can cause you to enter trades that are unrelated to your strategy.
• Fear can cause you to sell at a loss, even when that isn’t the strategic move.
• Stubbornness can cause you to hold a losing position instead of cutting your losses.

The list goes on and on. So, it's always advisable to work on your emotions before diving into share market.

 

[RoyalReboot]

Emotions are the biggest enemy of any trader.

• Greed can cause you to enter trades that are unrelated to your strategy.
• Fear can cause you to sell at a loss, even when that isn’t the strategic move.
• Stubbornness can cause you to hold a losing position instead of cutting your losses.

The list goes on and on. So, it's always advisable to work on your emotions before diving into share market.

Rightly said, emotions always ruin the trading, once greed enters in a trader's trading then he only gets loss even where he could make profit.