The stock market is often described as an opportunity for anyone to make money quickly. However, investing in stocks requires time discipline, discipline and a systematic approach to investing. It also requires patience, and a long-term investing horizon.
It’s easy to get lured by the promises of rapid returns and quick fixes, but the reality is that investing in stocks is a lengthy process with a lot of changes and ups. But the rewards of investing in the long run can be significant. To help you on your way to success here are some share market tips for novices that you must keep in mind before starting.
Don’t Be a Jack of All Trades
New investors often make the mistake of switching between different strategies. This can be an expensive mistake, particularly for those just starting out. For instance, some novices attempt to be “jacks of all trades” changing from trading and buying short-term investments (options or futures) to investing in US stocks. However, this method can be dangerous and expensive because it involves a large amount of charges for transactions exchange rates, as well as costs for conversion of currency.
Use a single investment plan instead and concentrate on the potential value of a stock over the long-term. Avoid overreacting to short-term events and focusing on price fluctuations and ensure that you review your investments at least once per quarter (or when you receive quarterly reports). Don’t be distracted by the search for the next big thing.
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