Do your own analysis
If you want to invest in the stock market, then you learn to work analysis analyze the company yourself, and do not blindly follow your friends, relatives, brokerage, forms. Always remember that no one can do more than your money. So, after doing all your work analysis, decide your investment.
You can discuss your work analysis with the rest of the investors. And you can also take others’ opinions on it. Just like before taking some important decisions in our life, we ourselves understand those things in detail. And then decide. We take the opinion of others. But we do not follow him blindly. We listen to their opinion and take their opinion on their own. If you think that I do not have time to work analysis, or for some reason, it is not possible for me to analyze. So you’d better invest taxes elsewhere.
Example – Invest in Mutual Fund. In the mutual fund, the professional fund manager manages your money.
How to avoid penny stock
A beginner should stay away from penny stock. A lot of beginners start investing with a small amount. They are initially attracted to a penny stock. That is, the stocks of which are priced less than 20, 25 rupees, they start buying. Without analyzing that company. And they think it is better to take stock of 500 or 1000 rupees because they buy 100, 200 stocks of 5, 10 rupees. If the stoke price increases a little too.
Some beginners feel that the company which reduces the stock price is a new company. And that stoke has just arrived in the market, but it is not so. Amongst the stocks which are priced below Rs. 10, 20, there are many companies that have been in the stock market for years. But due to poor business direction, their prices have come down to Rs 10, 20 level. And their market capitalization has also reduced a lot.
Before investing in a penny stock, you should know that if the price of a stock is so low, or less, why it is there. Unless you have good expertise, then it is good to stay away from penny stock.
You know that there is only one thing behind all successful men and that is Patience. All successful investors have the same quality in common and that is patience. It is very important to have the patience to buy a stock at the right valuation. When we have money, then we quickly buy any stock at any valuation. But we must be patient. Buying a stock does not mean that you should wait patiently by investing in an array and non-stock.
Don’t start with a large amount of capital
Many beginners already start with very large capital. Being new in the market, they do not know many things practical and most of the beginners do not have sufficient expertise in the beginning. Due to which the chance of loss is very high. So in the beginning, you should start from a low amount.
Stay away from stock tips
Some beginners work on the tips given by others. Which is wrong.