Stock market is not a business for everyone because it is tricky and a lot of details go
into it. If you are not equipped with the knowledge of the market, you will most probably lose all your money. People are always interested in investing their hard-earned money in a place which is capable of giving solid profits. However, one must know how much to invest in a certain place and how to beat inflation. Below is the ic markets review that has instructions to be followed if you want to make a lot of money.
Before diving into the stock market, familiarize yourself with the basic education and
understand the individual securities which build the stock market. As the old saying goes: ‘It is not a stock market but a market of stocks’. The concepts which you should be aware of are
- Rules and terminology of trading frequently used by investors.
- Know the meaning of financial abbreviations and definitions. For example, ROE, PE, EPS, Market Cap etc.
- The fundamental timing and method of choosing stocks.
- Learn about the interrelationship between the market and overall economy. Understand how factors of GDP, rupees versus dollar value, fiscal deficit and inflation influence the stock market.
- Only invest your extra funds
Oftentimes people get so excited upon hearing about the ic markets that they decide to invest the only money they have at that time. If you can not afford to lose a certain amount, then do not think of giving it away recklessly. How vulnerable you are to the market risks depends on your financial status, age and retirement backup plan.
Remember that you are only investing so that you can get profits in return. Even the most careful people lose some amount by the systematic risks which can not be avoided at all. Therefore, a newcomer should be extra safe.
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- Say no to borrowing
People sometimes use the technique of leverage by borrowing money from the bank, close ones or brokerage firms. This is also a risk in itself because if the stock market starts to go down, you will lose both your leverage and the initial investment. Therefore, only take out the leverage tool after you have enough knowledge and experience. Do
not do anything which does not make you feel confident. Get a grip on your decision making process.
- Do not attempt to time the market
Another mistake through which you can lose all your money is by timing the market. This is something which financial planners strictly warn investors about. Have a sane approach towards investment and accept the fact that no one can always time the market because it is ever changing and fluctuating. Practice discipline and patience so that you can find the right stock to invest in.
So now that you know the basic know-how, you can go on to diversify your skills, plan out your strategies and have a disciplined approach towards the stock market.
Remember to keep educating yourself regarding the fundamentals and always capture the long-term picture of every step you take.
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