Many times you might have bought a stock based on someone’s expert advice for making a quick buck and would have waited for months, or years, for even just recovering your cost? We’ll here provide few tips that could assist you in improving your investing mindset, setting your thinking straightforward and make you think like high-roller with respect to the Stock Markets. Here are some of the tips you should keep in mind while investing for higher returns:
Disciplined investing refers to adopting a strategy which is based on the science of investing rather than just opinions.
Understand the basics of a Balance Sheet
You are not required to be a financial guru for investing successfully in the stock market, however, it is of great benefit to understand the balance sheet basics and other some of the other key metrics provided on sites like Moneycontrol.com
Firstly, the most important rule is not to overtrade. Don’t ever put your entire money in the share market.
Invest in different sectors
Ensure that you do not invest all your money in a single share or company. Always invest in multiple shares or companies in various sectors. Investing across various sectors would keep your investments safe and will let you dodge big losses.
Watch, wait and trade
Don’t ever jump into the stock market early. Give yourself enough time before you begin trading.
Study the tips carefully
Don’t react to tips offered by a layman. You should observe the trends of the respective share, check the volumes, read various stats such as 52-week lows and highs, EPS, capital adequacy, debt servicing ratios etc. Don’t buy or sell any share just by following the tips.
Go with the Market trend
Don’t try to find your own way in the Stock Markets. Follow the market trends. Do not go short, if the market is bearish and don’t go for long if the market is bullish.
Minimize your Loss
Get out of the trade in case you entered into it in wrong during the wrong by incurring a small loss, instead of wasting your time, waiting and making your small loss a huge one.
Do not go for early trades and ensure that you do not square off your trades early. Do not square off your trade early in case you see the price of your share coming down. You need to give enough time to your investment to grow.