Luck favors only those who know the tricks of finding out potential stocks besides managing their money. If you are not equipped with the knowledge of the shares market and do not stay updated with all relevant news that matter to you but yet nurture big dreams of making money, your dreams will never get fulfilled. It is never too late.

You can start learning right away. Stop your investing spree in the stock market for some time and gain knowledge first. Once you cultivate the passion and determination to learn, read, conduct research and once you are confident enough to win, you can then step your foot forward towards investing in any potential stocks that you are interested. You will then witness the wheel of fortune turning in your favor. In no time will you see your money invested in stocks multiply to your satisfaction.

It will be wise on your part to study the performance of the shares market for the past several years so that you come to know what caused crashes, what caused the values of the company stocks to go up, and all related paraphernalia. Understanding the past performance and history of Mr. Market besides also familiarizing yourself with all the terminologies associated will prove useful for you. 

You will know whether a particular share is potential or not once you consider all factors concerned. Again it depends whether you want to invest for short term or long term. Risk is involved more for the short term than for the long term.

Taking informed decisions and coming close to predictions for both the terms will certainly lower the risk level involved. What are the factors that you should consider when choosing to invest in a share of a public company? To start with, consider the sector such as whether it is realty or auto or banking or any other segment. Then consider the company, its reputation in the market, its growth trajectory for the past several years, financial records so that you know whether it has recorded good growth. If it is, go for it. If not, then you should continue your search further to find the potentially of another stock. Of course you will have to dedicate your time and efforts. Mr. Market only turns favorable to those who follow such a planned strategy.

Always be ready to learn from your mistakes. A wise learner in the stock market is one who admits the mistakes and develops the passion to learn. You cannot expect every single stock you invest in to yield good returns. Learn right and trade smart!

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