Investing in the stock market could be a great way to grow your wealth. The stock market already had a great influx of people investing during the pandemic. But where do I start if I’m willing to invest now?
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Investing in the stock market could be a great way to grow your wealth. The stock market already had a great influx of people investing during the pandemic. But where do I start if I’m willing to invest now?
I think it depends on the situation. Perhaps, for a beginner, you should first analyze the market for a few days then take the action to buy shares. By this, you will get some knowledge of the market, so by which it would be easy to take a call to buy the shares. Just giving a simple example – In this COVID-19, all of the sectors where down only 2 sectors were doing well Pharma and IT. The reason behind the Pharma sector doing well as all companies are trying to find a cure for the diseases. And secondly, the IT sector is up because of the disease the people cannot go out everything was in the digitalization stage- Payment systems, online classes for students, Online Conference meetings, etc, and still going on. So for a beginner, you must analyze the situation and start with a small amount of investing, and then afterward when you get a grip on it you can invest in a higher amount.
I think first, what beginners should think about is whether they are willing for wealth maximization ( Investor ) or for profit (Trader). If their motto is wealth maximizing one should invest in blue chip companies like Reliance industries as there is a less risk when compared to other stocks. If we are looking for profits we should be clear about our stop loss. Some best stocks are IOC,COAL INDIA etc.. as these are less risky n better dividend paying stocks.
1.Never be greedy book profits as the markets were not good in the present situations.
2.Sell stocks on news and buy on rumors.
3.Don’t depend on calls given by any paid consultants. Better watch the stock for a while and Invest.
4. Don’t buy too much stocks on leverage as you may end with huge loss when ur not in a position to take delivery.
5. Diversify the amount you have.