Make Money is a term which sells like hot pancakes! Everyone’s ears prick up at the mention of earning some extra moolah on the side. And, why not? Everything is about your earnings and worth in today’s world. Investing in stocks sure looks like a lucrative avenue. Before plunging in this seemingly bottomless pool to make money, using stocks as a medium, one has to follow these 3 Simple Investment Mantras.
Avoid the Herd Mentality
Never invest because so many others have. Please do remember that it’s Your Money which is put at stake. Only you are best to decide its use. Invest in companies which have a fairly straightforward business model. Try to focus on companies that pay dividends to their investors. Get a know-how of the management and its policies. The final investment decision should be made based on research and your outlook on the same.
Read More : How to Use Ratio Analysis for Stock Selection
Cheap Isn’t Always Good and Expensive Isn’t Always Bad
Sometimes a share may be cheap because the industry is facing slow down. And sometimes a stock may be expensive because it’s widely expected to see rapid earnings growth in near future. So evaluate the stock potential not only on its current prices, but consider its prospects for your entire investment time horizon.
Plan Your Exit at The Time of Entry
Investing is not about buying alone. It’s actually more difficult to decide when to exit from a particular stock. Practically, no stock is to be kept for eternity. For some, the holding period may be 1 year, for some it may be 5 or 10 years or even more. What is more important is to keep on reviewing your investment and exit from the stock before it’s too late.
“Anyone who is not investing now is missing a tremendous opportunity.”
– Carlos Slim
Do’s and Don’ts for an Investor
Do’s
- Do read all documents carefully before signing.
- To always deal with Government registered stock broker or sub broker or authorized person for any investment through stock market.
- To invest using banking channels, i.e. no dealing in cash
- Do remember that nobody can promise you guaranteed returns in stock market investments. It is neither allowed nor possible.
- Do register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions.
Learn More : What are Fundamental Analysis and Technical Analysis?
Don’ts
- Do not invest and trade on the basis of ‘Tips’.
- Do not share password of your online trading and demat account with anyone.
- Try not to share OTP received from banks, brokers, etc. with anyone calling you. These are meant to be used by you only.
- Do not invest in any chit fund, Ponzi and unregistered collective investment company.
- Do not follow herd mentality for investments. Seek experts and professionals advise for your investments.
Do you know any Investment Mantras to Make Money? Share and Comment them on Aicrow.