Over the past couple of months, we have covered topics that have extensively highlighted various lessons pertaining to financial investment, such as the stock market, the capital market, stock brokers and many more. We therefore thought it fit to summarize these lessons in 7 simple tips for successfully investing in stocks.
Here we go.
1 Have the right market insights: The best way to identify the best stocks that will guarantee you the best returns is paying attention to how the company is and has been performing in terms of its past and current revenue as well as projected revenue. You can never go wrong with the right insights.
2 Loses are part of investing: As an investor, you must be aware that you will not always get it right 100 per cent of the time, loses are part of investing. Therefore, do not always get discouraged when you lose money, instead take in the lessons and don’t repeat the same mistakes.
3 You must be willing to learn: Investment requires patience and a willingness to learn. You should therefore not get discouraged when you don’t get it right quickly. As a matter of fact, that’s why stock brokers are available to you. Make them a part of your research and learn as much as possible from them.
4 The broker you use matters: Before you become a seasoned investor, it is important to seek the services of a broker, specifically a full service broker. Ensure to do your due diligence by ensuring the broker you start out with has a good track record especially working with new investors.
5 Reduce the amount of risks you take: In investment, many people believe that the greater the risk the greater the reward. However, this only applies to investors looking for quick returns. It is advisable to think of investment as a long term play therefore, limit venturing into volatile investmentslike options, foreign stocks or futures.
6 Focus on quality not quantity: As an investor, it is not necessary to hold on to too many different stocks in an attempt to spread your risk. It’s better to focus on holding onto a few but high quality stocks which guarantee you good returns.
7 Keep emotional attachments out of investment: There is a tendency for investors to get too emotionally attached to their stocks and this distracts them from sticking to the rules of buying and selling. This could make you lose out on an opportunity to cash out at the right time.
We trust that these tips will add value to your investment journey. Reach out to us and we’ll be happy to walk with you all the way.