GOLDEN RULES OF INVESTING

 10 GOLDEN RULES OF INVESTING:

1. Never invest in single stock.
2. Identify the right time for buying and selling.
3. Think long-term.
4. Stay liquid.
5. Never invest in something you don't understand.
6. Focus on value, not price.
7. Pick up the right stocks for investment.
8. Do not let emotion cloud your judgement.
9. Take informed decisions.
10. Buy low and Sell high.

1.NEVER INVEST IN SINGLE STOCK:

                                            

OPPOURTUNITIES OF HOLDING A SINGLE STOCK:

When you are buying a individual stocks, you can reduce a brokerage cost.

if you hold a single stock there is not any management fee for investing in your assets.

Whenever you buy and sell the share.

To hold a single stock in long-term will have a big impact on your return based on investment.

First of all understand the what stocks you will hold for long-term and analysis the companies perform in current year.

It is easier to control the taxes on your individual stocks.

Whose own the single stock, that person have responsibilities and control the profit or losses.

It requires just enough a short time to monitor your portfolio.

OBSTACLES OF HOLDING A SINGLE STOCK:

If you hold a single stock is high-risk.

Not maintaining a single stock otherwise you have no choices to bear a losses.

To maintain perfect portfolio with 20-30 stocks to gain a decent profit and get away from losses.

you must control your emotions for trading.

suppose you can hold some stocks in your portfolio that would have been avoidable by holding something a bit longer.

2.IDENTIFY RIGHT TIME FOR BUYING AND SELLING:

This types of questions mostly raise from beginner to the stock market.

Time is playing a major role in stock market, when to buy and sell.

Market opening time Monday to Friday 9:15AM-3:30PM.

The common rules in the world is to buy a stock on Monday openings and sell a stock on Friday closings.

Because there are having accurately two days time for analyze for which stock to buy and sell.

When the market is bullish view you can use a call option(buy).

When the market is bearish view you can use a put option(sell).

3.THINK LONG-TERM:

   LONG-TERM INVESTMENT:

            Long-term investments are expecting higher returns after several years.     

           There are 5 years or more, these investments allows you to invest in aggressive market instruments. The investment options are

    STOCKS

• Stocks are the tangible representation of a part of a company's value. A company's offer INITIAL PUBLIC OFFERING(IPO) to investors to raise funds for business.
• If you invest in the stock market& hold a stock in long term you can expect 16% of return, you can first of all understand the market movements.
• Analysis the previous and current year balance sheet of the company moreover dividends pay out percentage check out year by year. 

Long-term investment is better than Short-term investment.

4.STAY LIQUID:

The stock is an liquid asset, whenever you  buy and sell the asset within market time.

In case buy and sell in the stock market immediately impact to the current markets.

The liquidity size depend upon scale of the company.

Liquid asset means it can be bought or sold with no loss of value.

Liquidity is a bid ask price moment for Investors in the stock market.

5.NEVER INVESTING IN SOMETHING YOU DON'T UNDERSTAND:

In this current situation most of them entering into stock market without any knowledge, this is the backlog of new investor.

The investor thought that stock market is gambling.

First of all analysis the company performance, where to start?, what are the service and products?, analyze year wise dividend payout ratio.

Before investing in the stock market analyze the candle chart and there are many thing to learn in stock market.

There are some risk to buy a high performing shares also.

Investment in the stock market is good idea before that know the stock market facts.

The stock market is playing to investor emotion.

Emotion play is very important to every investor, there are more ups and downs.

6.FOCUS ON VALUE, NOT PRICE:

Before investing you must analyze the companies balance sheet and profit & loss account.

This analyze help to invest in that company stocks.

Focus on company value because the price will have ups and downs.

The company is performing well automatically many investors come and buy the shares moreover that share will be going to reach the high price range.

7.PICK UP THE RIGHT STOCKS FOR INVESTMENT:

First of all first find out the right kind of trading will follow?

There are many kind of trading style intraday, delivery or swing trading, short-term or long-term trading.

Create a own strategy for trading because our own experience is the best teacher ever.

First invest in the one stock and try to understand the charts, try to update yourself then laterally create your own portfolio, this is the experienced investment pattern.

Before enter into the market to analyze what are the stocks to invest? which sector? This given an primary idea to invest in the stock.

8.DO NOT LET EMOTION CLOUD YOUR JUDGEMENT:

Investor must play to the emotion because the stock market is an emotion investment game.

Don't panic moreover over confidence in the stock market is the key for slow poison.

Control the emotion and invest in the shares is the best way.

9.TAKE INFORMED DECISIONS:

Review the financial status for picked stock companies.

Analyze the company financial reports to current year and previous year.

Get the details-payout ratio and earning per share every year.

Return on equity.

10.BUY LOW AND SELL HIGH:

Most of the investors buy the share on low price and sell high price.

Everyone desire invest the low price and  earn more money on selling time.

This is the Indian mentality.

To invest in long-term, it gets more time to analyse the market.