In this article, I give you 20 tips on how to invest your own money in the stock market and various funds. I made this shortlist to give you a quick overview of important points to pay attention to when you do your business.
Stock market tips:
- Always buy at low prices and sell at higher ones.
- Do not hunt yields. If you like stocks or funds, buy them only when they “dive”.
- Do not abandon your winners. In other words, let your profits be made turns around and don’t stare too much to say goodbye to your investments that achieve the highest yield.
- Cut your losses before they become excessive.
- Never be too attached to a stock or fund (or banks). As John Harvey Jones once said, “Sometimes you have to kill your favorite child”.
- In general, think long-term. How Warren Buffett, great American investor once said, “Never buy stocks unless as their owner, you would be happy even if the stock market closes during for the next ten years”.
- Don’t let that stop you from questioning your portfolio regularly. You need to check frequently to see if your portfolio is appropriately balanced.
- Always reinvest the dividend paid. The power of complex interest your shares in which you have reinvested the dividend make a huge difference in your total yield accumulated over the years.
- Never put all eggs in the same basket. That you have all your money in March 2000 invested in shares of the American technology sector, it would probably be about 90% of the value of your portfolio over the next few year was deleted.
- Although it makes sense to hold stocks in the long run, you probably don’t want to
to hold them forever. In the end, the stock is still to be bought and to be
sale. - Make sure you spend at least as much time
thinking about selling the stock how much time you spent
thinking about whether to buy them. Many investors ignore it
this discipline of vital importance. - Possible tax preferential investments such as payments in
use voluntary pension funds wisely. Never let that
you tax relief as an investor oil. - If you don’t understand how a particular investment works, probably
not a good opportunity to invest your money in it. - Don’t be afraid to ask “what if?” questions. In the late 1990s
year, many investors bought frugal investment products
seemingly “low risk” associated with the yield of the global market
stocks. Several wondered what would happen if globally
the capital market falls off the cliff it climbed, as it were
occurred by the year 2000. - Be flexible and never let yourself be pushed into a corner. If
you bought the wrong stock don’t just watch it price
well, yes. Don’t stubbornly hold on to infinity hoping it will
its value returns to its historical peaks. That may never happen
will not happen. - Don’t be afraid to invest against the majority in the market. Some
very successful investors have become rich thanks to investments in
opposite direction from current trends. - Never be influenced by “special offers” such as
is a discount purchase of shares in open – end investment funds
at a certain time the fund management company advertises. It’s a lot
it is better to buy shares of the right fund at that moment than shares
wrong, and even if we have to pay an entry and exit fee. - Ignore all notes and advice of active market participants, either
they offered in the workplace or next to the nineteenth hole of local golf
playground. Remember the old adage of experienced market participants
capital: “Wherever there are persuasions to buy shares, there is also
let the faucet for which he persuades exist. ”. - Never let the euphoria of investing overwhelm you
there is a price of a stock or commodity that will rise forever. - Remember that if something sometimes looks too good to be
true – then it’s probably not true.