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How to choice best stock to invest, strategies and techniques for beginners



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How to choice best stock to invest

While there is plenty of money to be made on the stock market , no one should invest without first researching the many opportunities available. Read on to learn what to ask yourself before you buy stocks so you don’t risk losing your money.
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Do not have unrealistic expectations about your investments . for the most part, instant wealth is not a realistic goal. There are a few stories of people who made killings overnight , but thinking that will happen to you will very likely lead you to take undue risks . As long as you’re controlling your risks and are not investing too much on unproven stock, you should do just fine.
stock to invest, strategies and techniques for beginners


How to choice best stock to invest,  strategies and techniques for beginners

When beginning in investing in the stock market, be sure to not invest too much. Many people make the mistake of putting of all their money in to the stock market and end up losing it all. Set limits to the amount you are willing to gamble on and no matter what, do not go over this limit.
Tips for Beginners :
  • Always look at the bigger picture
  • Education is the key
  • Start investment in smaller amounts
  • Keep a risk threshold
  • Choose the right guide
  • Don’t let emotions make decisions for you
  • Cut losses immediately
  • Diversify Investments
  • Avoid complex strategies and leverage
  • Never invest money you need.
Remember that individual stocks do not necessarily represent the entire market, a decent stock may soar while the overall market tanks, while a bad stock may plunge in value when the rest of the market is thriving . This is why it’s a good idea to diversify the types of stock you own, choosing stocks from a variety of companies in many different industries.

When considering a certain company, think about if you’d like to own the entire company.The businesses that have the best reputations and the most availability as far as purchasing their products or services are the most likely to do well in the stock market . keep this in mind when selecting stocks.
Source google:
Don’t invest too much in the stock of your company, it is a good thing to show support with stock purchases , but loading your portfolio too heavily with one stock is not a sound investment. if your main investment is in your own company, then you might face hardship if your company goes under.
Before investing your money in the stock market, practice your skills first, software isn’t required,either. just select a stock, record its current price and identify your reasons for choosing it. Remember to keep track of your stock’s behaviour over time. This is a great way to see if your stock selections are profitable without risking any money.
Here some strategies :
  • Great Money Managers: If a trader knows how to manage their funds like professional money manager then no one can stop you to be a successful trader. You should not invest your money at more than 2% risk so that you will never lose more than 2% of your total capital
  • Don’t limit to Stocks: if you are investing in intraday then you do not have only option to invest only in stock.but you can also trade in future, options, forex , stock index futures, sectoral index,bonds, and commodities.
  • Focus on New Strategies: There are various methods and strategies that are claimed to be the best for intraday trading but you cannot implement all the trading strategies at a time. sometimes traders use many trading techniques within a trade and the result is loss
  • Stay Neutral During Trading: Traders should stay neutral at the time of price movement during a trading period. traders should be confident in their trading strategy and wait for the market to set your trading
  • Use Risk Capital: Before jumping in to the market, you need to know the trading is speculation business, thus you cannot invest the money you have saved to turn your livelihood. Thus you are strictly recommended to invest only that money you do not need to be used.
  • Learn From Previous Trading: It is one of the most genuine and profitable intraday trading secrets of successful traders. every trader wants to earn money with some or other strategy, but traders cannot go on the right side always.
If you are beginner, first learn more about stock market, then start investing and don’t do intraday trading! when you fell , you are capable of handling the situations , then start doing Intraday, F&O .
For beginners its better to go with , Discount brokers like Zerodha , here Zerodha offering Zero brokerage on Investments or Delivery and very low brokerage for Intraday , F&O.(0.01% or Rs 20 per executed order, which ever is low)
Happy Investing !!

Source : qoura.com

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