The stock market is often touted as an opportunity for anyone to make easy money. But investing in stocks requires patience, discipline and a structured approach. It also requires patience, and a long-term investment plan.
It’s easy to be lured by the promises of speedy returns and quick fixes, but the reality is investing in stocks is a lengthy process with a lot of fluctuations and ups. However, the benefits of long-term investing can be significant. To help you to achieve success here are a few share market tips for novices that you must keep in mind before starting.
Don’t be a jack of All Trades
A common error among new investors is to jump from one investment strategy to the other. This could be a costly error, especially for newcomers who are still learning the techniques. Some newbies, for instance try to be “jacks of all trades” and switch from buying and trading short-term investments (options or futures) to investing in US stocks. But this could be risky and costly due to the large amount of transaction fees, exchange rates, and charges for currency conversion.
Stick to one investment strategy instead, and concentrate on the value of a stock in the long run. Avoid overreacting to short-term events and focus on price fluctuations, and be sure to keep track of your stocks at least once per quarter (or when you receive quarterly reports). Don’t get distracted by the pursuit of the next big thing.