The stock market is like a wild bull – Follow 6 tips on how not to get bucked - Make it a Habit!

Bysos Fantasy Game; Saviour of your Boredom during lockdown
  • By BYSOS Expert
  • May 08, 2021

Buying stocks isn't hard. What's challenging is choosing companies that consistently beat the stock market. And, this is what most of the common people fail to do and get around for stock tips.

1. Set goals:

You should have a goal before you start investing. And, the decission should be made in regards to short term and long term goal. Get the better clarity of the duration of investment. As per your goals invest in appropriate platform to get the high returns.

2. Understand Risk Tolerance

Considering the unpredictably of stock market, you will need to analyze the risk tolerance first for any investment. You should be prepared to bear the swings of the market and the after affects on the investment value. The risk tolerance will completey depend on how strong is your ability to bear the anxiety due to fluctuating market. Never panic sell the securities at the wrong time.

3. Pick the right stocks

Never invest in penny stocks and word of mouth stocks is our advice. Do a strong research on performace of the company stocks. This can be capable to withstand the fluctuations of market and you will have the strongest chance of the best returns possible on the investment in the longer run.

4. Control Emotions

You will need to learn controling your emotions while deciding to invest in share market. Your emotions will reflect the performace in the short run. Never get influenced by the actions of other investors or word of mouth. You will also need to analyze the logic of the situation to make a better decision. Learn the reasons on when to expect the stock to perform better in the near future and if required target to exit the investment. Buying and Selling strategy is important in stock market.

5. Understand the basics

This is the first thing you need to do before deciding to invest in stock market as understanding the basic is very important. Most of the investors fail to understand that the onetime effort put in understanding the terminologies and strategies once can help in making wise and informed decisions, resulting in better returns. Hence, it is suggested to understand the function and strategies or reading the research reports or performance reports of companies before investing in them.

6. Diversify investments

Diversifying equity investment implies investing across different sectors and industries. A diversified portfolio can better manage the impact of a swing as often a downtrend of one sector causes an uptrend for another. You will need to take utmost care to diversify investments in different investment tools and maintain a well-balanced portfolio.

Few bonus Dos and Don'ts:

Do's:

  • Always prefer SEBI and Stock exchange registered market intermediaries
  • Ensure clear communication with your intermediary.
  • Read all documents carefully before investing.
  • Check the company’s credentials, management, and other vital information.
  • Be cautious of stocks showing rapid ups and downs.
  • Make investment decisions with proper research and analysis.
  • Practice stock market by playing stock fantasy games.

Don’ts:

  • Don’t deal with non-registered brokers, sub-brokers intermediaries.
  • Don’t blindly follow the herd mentality, media reports or speculations.
  • Don’t sign/submit any documents without fully understanding its terms and conditions clearly.
  • Don’t imitate investment decisions.
  • Don’t invest according to emotions.
  • Don’t wait and time market.

You should also understand that the basic principles of the economy are supply and demand, but ‘what determines the price of a stock in long term?’ is something we need to focus on and this is what you will be able to learn by playing Bysos stock fantasy game. Download the App now and Start Playing!

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