10 information when thinking about investing
in the stock market
When the stock market turmoil increases and is controlled by a state of uncertainty and suspicion, the investor stands confused, so we offer you 10 tips to help investors for those who want the success of his long-term projects in the stock market. The investor in the stock market will sell the shares that have increased in price and keep the low until the price increases, but this may be Mistakes, the situation may get worse and for this I will give you some advice if you intend to invest in the stock market
Here are some tips for dealing with stock market risks
1- Selling your shares correctly
Peter Lynch, businessman and expert in securities trading, talks that investments that have increased 10-fold in value, but whose profit was very small are still with me and I have not sold them, for this you must control the increase, not every increase is good and worth selling, so the opportunities you want need more Time
2- Selling the losing stock
Because there is no one who guarantees you that he will win again, and it is important to be realistic regarding weak stocks. Although selling losing shares may constitute psychological and material pressure for you, recognition of mistakes leads you to success, and these shares must be sold in order to stop the loss of bleeding. .
3- Do not run after random advice
Regardless of the source, never accept anybody’s advice on stocks. Just do an analysis of the company you want to invest in yourself and stress the word “(yourself”) because long-term success requires a good study of what you intend to spend your money that you are tired of getting
4- Do not seduce small candy bars
You entered this field to make money and you do not have to rush just because you saw a small profit that will return to you but rather be patient and be confident in what you want and do not make the increase in some pounds in the stock that you bought scare you or your tension
Whoever cares about small increases are the short-term investors, but you are a long-term
investor, the more you endure, the more you earn more and more, and I mean patience for many years.
5- Don't overstate the stock price
Investors often focus on the return of shares in a hysterical manner and exaggeration is something unwise and totally illogical. The rise and fall in shares on a daily basis is a movement of a natural stock exchange and does not mean that there is an error or exaggerated profits issue because it is a movement of natural securities because of the activity of the company that invested In it, and because of its activities of buying, selling and investing, you should not worry
6- Resist your desire to sell
You might think that there is no harm or loss in selling low shares, just imagine with me (if a share worth $ 5 goes down to $ 0) or is that ??? The stock, at $ 75, does the same thing. You lose 100% of your initial investment and this is the first mistake a trader may make to believe that the decrease in the value of the shares is treated. This is a loss in all forms.
7- Choose for yourself a principle and stick to it
There are several ways to invest in stocks and to choose the stock correctly, but you must adhere to one, so moving today one way and tomorrow another way makes you vulnerable to risk and loss. For example, when you look at the investor absolutely months ago, Warren Buffett will find that he adheres to one strategy for dealing in the stock market and has not tempted him. Any way to change his style and method and thus avoid big losses when the technology companies that existed then were destroyed
8- Focus on the future
Investing in the stock market requires making decisions based on events that have not yet happened. Previous company data on which the company will invest is indicating things that will come, but it is not guaranteed. Peter Lanch said, I was angry when the prices of the shares of the Subaru cars increased and I was not bought, but when I checked I knew it The fold will increase again, so I realized that it is still cheap so far, and I bought quickly. The surprise was, it went up to 20 times, so you must have a future look.
9- Follow a long-term method
Since you want large and long-term profits do not make the market and its fluctuations tempt you as long-term investment is essential to achieve more success. While trading in the short term can achieve profits, this contains greater risks, especially if you follow the strategy of buying and holding shares.
10- Be open minded
You may have an opportunity to purchase the shares of a well-known company, but that company does not have awareness in marketing or investment, so do not be fooled, there may be small companies and they will become a giant in the future because of their awareness, as in fact, shares with small market value have shown, but their returns are greater than their counterparts. The big ones, but we do not mean with this talk to allocate all your shares to small companies. No, just be open-minded and think a lot before any step.
Our advice to you
Leave a percentage of the cash flow in your investment portfolio in anticipation of any sudden violent decline, to use that to buy at low prices to contribute to reducing losses for shares in the portfolio.