Starting With Stock Market Investment

Experts express that the stock market & investments are made only for the Bulls. Faint hearted persons are not allowed to enter in this lucrative, challenging & the most happening world.

With the economy at its BOOM, it has become more challenging to start investing with the right stock. Yet people from all over the globe are heading towards the stock market. Information Technology have brought this world much closer.

Each and every individual, whether he knows the 123 of the stock market or not, wants to have a GO. As a result, the investments are selling like vegetables in a weekly market.

The main objective of STOCK-123.....GO is to help out those people who wish to grab the best investment opportunities and become successful. Given below are the first two basics to keep in mind before starting out:

1. Stock Market is the other name of risk.

Often people think that buying stocks is as easy as shopping in the market. The only thing you have to do, is to name the product and pay for it. That's it, the deal is through. Yes, they are absolutely right. Anybody is capable of buying stocks. But the biggest problem lies in knowing the period for which the stocks should be retained and then selling them at the right time. If you have it into you, you have got the right nerve.

My advice for people is to wait for the best available stock; and not to gamble everything they have on it, especially the starters who don't have much understanding. Better lose in bits than lose really big at one go.


2. Don't get lured/carried by market hypes.

It is never advisable to get carried away by the market trend. Say, IPO of some big fish is looking very attractive and everybody is running after it, it is a must for a thoughtful investor not to invest in it unless he is prepared to risk losing his money on it. This way, you can get some real best opportunities in the stock market.

Lastly, most experts suggest the investors not to pick the best opportunity but to avoid the losing ones and taste the real success.

Market Tips to Abide By

Now that you have decided to step into stock market investment. Some handy tips to keep.

1. Remember the laws of economics.

The stock market depends all on economics, usually the law of demand & supply. Greater the demand for the stocks of a company, hence more buyers, resulting in increase of that company's stocks price. Now if there are more sellers for the stocks of a company i.e. supply is in bulk but the buyers are limited, the unit price of that company's stocks will decrease/go down.

2. Knowing the companies better.

Go through the company's profile whose stocks you are planning to buy. You should acquire all the knowledge about the company's products, services, operations, and track record in the business. This will give you an assessment about the company's capability to meet the proposed profits; and that the company is stable or not.

3. Stability of the companies.

With so many new companies entering the stock market daily plus the existing companies already listed to choose from, it becomes more challenging/difficult for the starters. Government-owned subsidiaries/companies/businesses are prone to be more stable. Industries in Petroleum & Telecommunications are more profitable due to constant demand and hence stable too. The fastest growing companies in the market are the IT companies but there are too many of them to choose from resulting in dilemma. It companies must be chosen by their track records and stability of at least 7-10 years.

4. Keep yourself updated about the market.

Stock market is not a child's game. An investor should be well aware in advance about the local, political and economical happenings. And there is no better way of it other than media, written or electronic. The industry where your company belongs i.e. whose stocks you have in your hand needs particular attention. Nobody knows when can a good business go bankrupt or experience huge losses. Better to keep an eye.

5. Web of investments.

Never invest in a single company. If all your stocks/money is concentrated to one big fish or emerging company, the chance of losses is huge. Better have a web of different companies and more importantly different industries so that if you incur some losses in one field, other earning industries can fix it up.

6. Stock brokers.

Do not just rely to what a stock broker says. Take your time and analyze. Remember, the stock broker is "gambling" with your money and he is not going to loose anything. If an investor doesn't keep himself updated to the market, he becomes vulnerable to scrupulous brokers.

7. Keep your greed under control.

Surely the stock market is all about profits, greed makes an investor lose all his senses. He may be carried away by the rumors and not check out himself and take a decision to buy/sell a particular stock thinking that he would earn big but in the process would even lose what he had.