- If you approach the world of stock markets with an open mind, investment can be a breeze.
Keep your eyes on the price – stock volumes, support, and resistances are for market traders, not market investors.
- Place your investments in companies that have solid prospects and outlooks, with stocks that are reasonable in value – make sure they also give their management sufficient reaction time.
- See if a temporary fall in stock prices can be used as an opening for yet more investment. Remember: always keep in mind a company’s fundamentals!
- Listen to the experts! Seek out their articles and wisdom – the road of stock marketing may be new for you, but to them it’s a well-traveled road.Read, listen, and analyse: come to your own conclusions about their advice and tales of experience.Just remember not to blindly follow a select few – always keep your eyes and your mind open!
- Never follow “tips” given out by brokers and large groups of other investors (also called “herds”). Many times we have seen Big Brokers or Large Groups send BUY tips so that they can exit from their Buy position. Beaware of such tips giving companies. Look and buy into good companies when they’re under the radar, and then sell the scrip when they’ve become well-known and when other investors are buying – looking at a company’s quarterly results and balance sheets will aid you in your decision making.Even if a company has a steep fall in prices, there’s a chance that it just might bounce back healthier than ever.
- Consider investing a quarter of your finances in emerging shares as well as in contra-shares. For example, investors who put their money into certain sugar companies (in 2007) received considerably more than their initial investment amount in return, in just a ten month period. Emerging shares will take around 3–5 years, but they could return more than quadruple the amount you initially invested with.