The Stock Market 72 Investing Tips

Why do so many investments fall through cracks? Experts blame everything from lack of information to wrong strategy and over-confidence about the swings in the market. Here, thereby, are 72 tips that may get you find the tracks of investments.

1. Determine your objectives in terms of short and long term.

2. Once the objectives are finalized, seek towards the type on investments to buy.

3. Calculate the level of risk to withstand it.

4. Determine where you stand in terms of needs and goals.

5. Make sure you have time to follow through your commitments.

6. Be consistent and organized. Make thorough efforts in whatever you do.

7. Be open to all the new thoughts and get out the myths of your bag.

8. Develop your own plans and play your own games.

9. Access quality investment information available at internet.

10. Diversify your knowledge and investments plans to various channels.

11. Making decision to buy or sell, stock, futures or options under pressure may turn out to be disasters. Never feel pressurized at any time.

12. Try to reduce risks, as far as possible.

13. Follow the 2% rule, i.e. never risk more that 2% of your trading capital on a single trade.

14. Always use stop loss orders to protect capital whenever you make trade.

15. Never overtrade with under-capitalized accounts.

16. Move your stop loss to lock the profit in as soon as the deal gets profitable.

17. Be a tail to the trade trend. Trading against trend without reasonable stops may harm a lot.

18. When you are unsure of the fluctuations of the market, it is useless to trade. Rather quitting is a smart move at that time.

19. Avoid stagnant and volatile markets.

20. It is beneficial to trade in a market that is trending with a volume of more than 100,000 daily.

21. Do not put all your profits in re-investments. Rather it is highly recommended to save profits and have a surplus account.

22. Develop strategies and financial plans and work on other alternatives of investments.

23. Always be well informed through the sources available.

24. Watch financial market news to help you to get through the moods of market.

25. Never run after tips. Refer them and use your own brains.

26. Invest in long-term investments, as there are greater chances of getting better returns in long term.

27. Short-term market being too fluctuating may cause severe problems to the one.

28. Evaluate your investments well.

29. State those in objective terms hat are easy to use for future reference.

30. A well-researched and well-done valuation is timeless.

31. Ask for help of your broker or a fundamental analyst.

32. Always go for a thorough research work before getting into the investment world.

33. Evaluate and analyze your decisions well in future to avoid repetition of same mistakes.

34. Select an intelligent broker and use his experience to fetch better returns.

35. Always seek for cheap brokerage firm but do not compromise on the quality of services provided by them.

36. Grab the opportunities of discount brokers.

37. When investing online, remember that online bets are not always instant.

38. It may get delayed due to heavy traffic on net or so.

39. Other technological faults like modem, computer and service provider may also act as a hindrance to your investment.

40. While investing in share market always set your price limits on fast moving stocks.

41. Market order vs. limit orders rule must be followed.

42. In case you are not able to access your online account get alternative for placing trade in advance.

43. Take time and do not assume that your order has not been placed. It may cause repetition of your order and hence, may fetch you losses.

44. Make sure the cancellation of order has worked before ordering another trade.

45. If you purchase a security in cash account, you must pay for it before you can sell it.

46. Reread your margin agreement, as if you trade on margin, your broker can sell your securities without giving a margin call.

47. Get to know about the legal terms.

48. Talk to your broker and online firm in case of some misunderstanding in investing.

49. Know what you are buying and risking in the market.

50. Bernard Baruch once said that “If you want to make money, big money, buy that which is being thrown away.”

51. Do your research before making investment.

52. Be alert for any alarms of losses.

53. Do not expect your broker to recommend the stock that may double your money in few months itself.

54. Don’t be greedy and sell the stock that goes up considerably i.e. 50% or more.

55. Don’t be impulsive and take calculated risks.

56. Don't buy a stock on a hot rumor; you'll get burned 90% of the time.

57. Consider tax-planning and income-splitting techniques.

58. Go for values of stocks.

59. Maintain a well-evaluated portfolio.

60. Keep an eye everywhere. Look for bonds of the companies that are out of favor too.

61. Be an above average trader.

62. Prepare a checklist for investment.

63. Make sure that the money you are investing is vital to your financial survival.

64. Beware of the internet stock fraud.

65. Verify your investment i.e. do not just rely on your broker, ask other advices too.

66. Every time you invest, assess the risk/return profile of your investment before actually committing to it.

67. Also, pay attention to how easily the investment can be turned back into cash, just in case.

68. Compare and contrast stock trading options available with other options.

69. It is also important to ascertain one’s risk appetite.

70. Make sure you follow some precautions before investing, like make sure that your broker is registered and not a fraud.

71. Make sure stock trading documentation is in order.

72. Remember the stock investment can be risky like any other investment; thus, evaluate the risks associated to a particular move.


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