What are some basic stock market tips for newbie investors?

• Gemmie_kirito

  3 Jul 17, 16:42

  As a newbie, you should know that there is no any tip or proved formula to take guarantee returns in the stock market. Here I like to share some tips that help every investor to reduce the risk in Stock Market-

   

  • Don't day trade. You'll spend a lot of money on taxes and transactions fees and it's pretty much impossible to tell what a company will do over the short term anyway.
  • Taxes on stock sales go down after you've held the stock for a year.
  • Look for companies that have strong brand names.
  • It's easier for small companies to grow quickly than large companies, but small companies are riskier.
  • Diversify. Don't invest all of your cash in one stock.
  • Look for companies with a lot of cash and little or no debt.
  • Invest in companies that you understand or know something about.
  • There are a lot of books about investing available in on-line for free. Bone up before you dive in.
  • I also recommend investing in mutual or ETFs where you can get diversification.

   

• Jolene.roger

  3 Jul 17, 16:51

  To avoid analysis & research work, many people blindly follow the stocks which are recently bought by Institutional Investors like Mutual funds, Insurance companies. They do so because they know that Institutional Investors research a lot before buying any stock & perform extensive analysis work. They think that by doing so they are doing smart work, but in actual this approach doesn’t work. WHY? because the stock which is suitable for Institutional Investor may not suit you because of the time horizon, exit strategy, amount of capital etc.