Here is a guide on how to become a successful investor,This is a must read for people who have just started investing in the Stock Market.
For any business to make money the basic aim is to buy at low price and sell at High price,So same thing for the stock market.
For any investor whether you are a short-term trader or a long-term investor there are some questions which you should ask yourself before investing such as:
- How much profit i want to achieve in the stock market?
- Which Stock to Buy?
- From where to get information on stocks?
- Whom should i trust for reliable information?
- When should i buy and when should i sell?
How much Profit i want to achieve in the Stock Market?
Firstly, if you are new to the stock market, then ask yourself what you want from the stock market will be a good idea. Are you chasing for short-term profits? Or do you just want to place your money somewhere so that you can receive a steady stream of income?
Which Stock to Buy?
It is always good to know as many companies as possible or at least a basic idea about them and what do they do so that you will be able to invest immediately whenever a correction or a good opportunity comes
Knowing and understanding the results and company expansion projects gives you the edge in making your decision on whether a stock is overvalued or undervalued.
From where to get information on stocks?
If you are a savvy investor then it is very necessary to keep your eyes and hears open in getting information and this can be done by looking at the latest information publicly available from sources such as company announcements, newspaper articles, corporate websites.
Make contacts with Research analysts working with reputed investment firms and they often meet and maintain contacts with key personnel of the companies they research on and have some information which may not be available in the public domain.
For beginners, stick to reading newspaper articles and analyst reports will be your best bet.Newspapers have reputation to keep and chances are they will be reliable.
When should you Buy and When you should Sell?
The most important factor for any investor is Timing,which is the final key to become a successful investor. Buying at the lowest price and selling at the highest is ideal. While this is possible, more often than not it won’t happen. What you can do is to read and understand as much relevant information from reliable sources as possible and make your own judgement on when to buy and when to sell stocks.You should also keep a track of political situation (Positive or Negative) in the country because situations may reverse the sentiments.
List of Multibagger Stocks: (Click on the Company Name)
For Complete List of Multibagger Stocks Click Here.
Knowledge Corner: (Click on the Link)