The stock market investment is confusing for most of you because of your lack of financial education that increases your level of risk aversion. One who has a sound knowledge of this market can earn well from trading also. Nevertheless, it is possible to take advantage of it if you put the necessary ingredients and goodwill, and then do not look for the excuse of lack of money as an easy excuse. For this, here are tips to succeed on the stock market, especially on stocks that are simply shares of companies. All without leaving feathers.
• Choose your Placement Method
The choice of the investment mode is crucial to get off to a good start on the stock market. You have the choice between the PEA and the Securities Account. The former has undeniable advantages in terms of taxation. Nevertheless, you will be obliged not to withdraw from the PEA’s liquidity. Contrary to what said or imply, you have the right to buy and sell shares at any time. Nevertheless, Indian individuals tend to adopt a bias of familiarity with the PEA which can be a risk factor.
• Choosing Your Online Broker
The choice of your online broker should not be neglected to succeed your debut on the stock market. However, it should not be done solely through brokerage fees. For example, the quality of the customer service and the platform to place your orders are to be taken into account. Please check if it is recognized by the market regulators in your country of residence (preferably) and avoid, if possible, subsidiaries of banks too big to fail.
• Choose old companies
When you say “old companies,” you refer to large multinationals. If, they have a preference on the stock market, thanks to their ability to adapt to the various economic geopolitical and monetary turmoil. Make them pillars of your portfolio to start trading well. It’s a way to not get too complicated in your selections of titles.
• Stay in your skill circle
If you are in need of some of the investment ideas in the equity market, stay simple by staying close to your skill circle. To do this, make a list of the areas of activity that you understand. For example, ask yourself about the real needs of a share broker in everyday life.
• Do not fall in love with your actions
You must never invest in the stock market by having a crush. This is the most destructive mistake that will hurt the particular investor in terms of ego. Without hiding, took a good lesson of humility with positions on gold mining. Concretely, you must stay away from the values that are close to your profession because you will tend to hang on irrationally if they are in loss.
• Avoid Listed Start-ups
Beyond my arguments, here are 20 reasons in English that explain that the majority of them are empty shells. Do not imagine that all start-ups that enter the stock market will become a potential Google.