The stock market is often seen as a place to make easy money. But investing in stocks requires discipline, patience and a methodical approach. It also requires patience, and a long-term horizon for investing.
It’s easy for investors to be tempted by promises of a quick return and a quick fix, but investing in stocks is a long process with many ups and downs. But the rewards of long-term investing can be significant. Here are some share market tips that beginners need to know before they begin.
Don’t be a Jack of All Trades
New investors frequently make the mistake of jumping from one strategy to another. This is an expensive mistake, particularly for those who are just learning the techniques. For example, some novices try to be a «jack of all trades» by converting from buying and selling short-term investments (options and futures) to investing in US stocks. This approach is risky and expensive, since it entails many charges for transactions and currency conversion fees and exchange rates.
Instead, stick with one investment strategy and focus on the long-term performance of a company’s stock. Avoid rushing to react to short-term events and paying attention to price fluctuations, and be sure to keep track of your stocks at least once every quarter (or when you receive quarterly reports). Don’t get www.marketanytime.com/ distracted by the hunt for the next big thing.