Compared to other options of investment, the stock has the longest ability to return returns. But, choosing the right shares is difficult, as well, it is important to buy the right time of the stock and get it at the right time.
There is no guarantee of return in it. No one can accurately predict when the market should enter and when should it exit. This is the reason that it is good to accept simple rules. Investment is an artistic science. Believe this concept and follow the rules. Well, in the stock market, definitely do. Investing in stocks is not easy for everyone.
Here are the top four rules:
- Research before investing, do not later examine the tips of any analyst. Many share market brokerage firms claim their large research team. Their daily reports come. So, request a detailed report from the broker. Only invest when long-term prospects are good. Do not waste time on tips with trigger prices and target price.
- To make money from the shares, the timing of the market should be the correct address means when to enter and when to exit from it. One common assumption amongst traders is that the shares should be bought long-term. But a better concept is to buy shares neither for long periods nor for a short duration. Buy stock for a sufficient duration. It can be too long and also small.
- It should be always said that after the fall of the stock market, it reaches its peak. Sometimes when it reaches the highest level, it is too late. The higher PE ratio means that the progress rate in the future is going to decrease. Shares can also have a big leap in one day and the difference in one day can also make a big difference in your income.
- At last, if you do not have time to select new shares in your portfolio then do not invest directly in the stock market. Investments in Mutual Funds means in Systematic Investment Plans (SIPs). It can be substantially priced.
You have to follow these rules to be a King of the share market.