Top Stock Market Investment Tips That You Never Knew Existed

Wednesday, January 24, 2018, 6:00 AM | Leave Comment

The best way to learn about stock market is to hear about it from experts, people who have already been in the trade and are making it big. It’s a huge industry that cannot be saturated, and that is why the experts offer advice to beginners so that they can claim their share of the market.

People make millions through the stock market when they are still young, and you also can make it if you only be keen and use the following advice. Others in old age also invest in brokerage firms and make a lot of money in the process. That is to say that, regardless of your age you can make it big in this stock market field.

Before we continue however, you should understand that the investment requires a strong platform for share trading. Good discount brokers are also a serious factor to your success, and that is why you should understand trading from a security firm like ASX.

We will for now focus of stock market investment even though there are other various ways of investing for instance ETFs, Forex Market, FD and Mutual Funds to name a few.

While starting to trade as a beginner, you will be lucky to learn from the experiences of experts who have been into stock market for long. Learning from their mistakes will help you to avoid the areas that might derail you, and so you will have an easy time investing as a beginner.

The following are some of the tips to follow.

  1. Education Is Vital

    You don’t jump direct into stock trading before you learn the basics regarding the market. what you will need to know first are the timings, the way to read the balance sheet of a company, chart reading and ensure you understand the metrics plus definitions such as ROE, EPS, P/E and so on.

  2. Start Small

    To start stock trading, you don’t need to wait until you save a fortune. Use whatever little amount you can get on a weekly or a monthly basis.

  3. Focus on The Bigger Picture

    Before you start, ask yourself why you want to do it. All traders are trading to make money, and a huge amount of it for that matter. In that case, you should sit down and check what has driven you to trading in the stock market, and what you will do with the profit that you will be making in your activities.

    When you do that, you will come up with the right amount of capital that you will need to start your trading, so that you can meet those goals that you have set.

  4. Limit Your Risks

    Planning about the risks is very important because you will set a specific amount that you can afford to lose. The reality is than in the stock market you can make a lot of money and at the same time you can lose your investment. In that case, if you are working with ASX or any discount broker, they will let you to set a level for a stop loss, for the orders you will have made in their platform.

    When you reach that level of the risk you were willing to take, you can exit from the investment and look for a better one.

  5. For Guidance, Look for The Best

    You aren’t conversant with stock trading and so you will need some guidance. To do the best investment, you can use some guidance from those who have been or are still in the trade, and know everything to help traders thrive in the market.

    TV shows aren’t the best choice for help. Social media groups related to stocks will help you a bit, but the best help will come from your financial advisor.

  6. Do Not Act with Emotions

    Sometimes you might see a trade that is so attractive, but it’s not that you are sure of what you are doing, it’s because your impulse or instinct is forcing you to take it. You always need to deliberate before you take up a trade.

    In so doing, you will have the opportunity to weigh the advantages and the disadvantages.

  7. Learn to Cut Losses and Don’t Invest What You Need

    You might take a trade that initially seemed to be the best one, but in the process the outcomes start going south. You shouldn’t hold on with hope that the trend will change and take a positive direction. Settle on the small loss by exiting before all you had invested goes down the drain.

On investing the money that you are in need of, its only prudent to trade with only what you can spare. You might lose the money in the market and when it happens, you will still be able to run your life just as usual.

Last but not least, ensure that you read the fine print of the contract from the brokerage firm. They have hidden costs that they charge for their services. Some may have a monthly charge for using their platform, and others may still charge you when you fail to trade for a while.

The best thing is to learn from the experts, and within no time you will be a professional stock broker making big money.

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