Investing can be very troublesome for new investors. With these inexperienced minds getting bombarded daily with news their sentiments take a roller coaster ride. Most of them are clueless whether to hold their purchases, sell them or make new investments. They are always puzzled about their course of action and thus always get trapped and lose their hard-earned money. Today, we will provide you with the top 10 Investing tips to become a successful investor, which is equivalent to a Free stock market course.
Have a decent knowledge before you start
Before you put your first penny into the markets, try to have knowledge of the rules of stock markets, and its basics. There is no point of putting your money into something which you do not even have the knowledge of. Almost all good stock market courses online with certificate teach you that investing is like investing in a business. Unless you know that the business is profitable, stable, and making money, you will not put your money into it. Similarly, should be the ideology for stock investing. Reading books, attending webinars or taking best certification courses for stock market are the ways through which you can educate yourself in this domain.
Setting up your investment goals
When you ask an investor, how long are you willing to hold this stock, the most probable answer would be “long term”. There are no qualms over the fact that the investor aspires to keep the stock, but the problem arises when they are planning to sell. This gets even more complex when their “long-term” is equivalent to a period of less than 3 years. The reason behind this complexity is the definition of long term, they are assumed to remain invested for 5 years or more. A stock market courses online with certificate will help you differentiate between long and short-term investing with trading.
Because of this mismatch, these investors are never able to realise the complete potential of their investments. The most common answer for exit in such investments is when I will have a 100%+ return or multibagger return. Still, you would have heard people saying that they have exited from a stock which has now risen to a sky-high level. The reason for not being in profits is exiting from a profiting stock at 20-25% and holding the loss-making shares. The best certification courses for stock market teach you to decide how long you wish to stay invested, before even choosing your investments.
Penny stocks & IPOs
If you get a chance to witness any retailer portfolio who has no knowledge of stock markets, his portfolio would be full of stocks below Rs 100. The ideology behind such investments is that if the stock crosses even Rs 200, one could achieve more than 100% return. It would have been a good ideology if one would have made these investments after analysing the fundamentals and financial sheets of the company from the best certification courses for stock market. Ironically, most of the stocks priced below Rs 100, have pathetic fundamentals, loss-making and debt-ridden sheets. Therefore, one might even say that investing in a bad penny stock is equivalent to investing in a business of value of a penny.
Unfortunately, IPOs in the recent time have become synonymous to traps, making people lose their hard-earned money. Zomato, Paytm, Nykaa, LIC, Cartrade etc. all have contributed to it, but still people are optimistic that these companies might atleast rise to their offered price. They could do that in future, but not with the current financials. People must understand that IPOs are always floated in the market at very high valuations if one checks with their knowledge gained from stock market courses online with certificate. Thus, it is comparatively better to stay far from IPOs, and only invest in them when they are listed and market corrects, if they are fundamentally sound.
Use the right investment strategy
Since majority of retail investors, put their money into stocks without any basic knowledge of the markets and unaware about how long they will remain invested, they are completely unaware of the fact that Investment strategies exist which are even taught in a free stock market course. Often, we see people buying stocks monthly but when questioned, they say that they wish to remain invested for 1 year. It turns out to be magical in an uptrend but a disaster in a downtrend. The reason behind that is averaging up and down respectively. So, after deciding your investment horizon and the stock it is important to choose the right investment strategy.
As per a famous quote, “Never put all your eggs in one basket”, one should not invest all his amount into one or two stocks or solely equity. One should choose sectors of interest first, and then choose the finest and fundamentally strongest stocks from them. Also, some of the allocation should be into Bonds, Debt Funds, Gold etc. It should not be also like one has invested into hundreds of stocks. That would lead to overdiversification. Also, it is very much recommended to choose the companies which are least co-related. To crack the formula for diversification taught in a free stock market course, you can refer to this blog: https://goelasf.in/undeniable-proof-that-you-need-diversification/.
Invest into Index
What would happen if you invested in a fundamentally stock, but it remained in consolidation for 2-3 years? You would get demotivated and would think that I have not made any profits in this period. If we told you that there is a strategy through which you can be invested in the fifty companies of the Index, minimising the risk?
Investing for the long term in Index through Index funds & ETFs taught in stock market courses online with certificate is the solution to it. The short-term fluctuations and consolidation will be duly taken care of. Index investments provide cushion of steady and sound growth and ensures that your portfolio benefits from compounding. History has shown that long-term investments tend to perform better than short-term investments, and thus Index investment proves to be the key. Learn index investing here: https://www.youtube.com/watch?v=WDWWBdH_8-I&t=8s
Is valuation calculation necessary for you?
Many beginner investors try to deduce the Intrinsic value of the company through various resources. Valuation is surely important, but only for those who are putting in a huge amount say 1 lakh or above. Going into complex calculations of DCF do not make any sense if one is putting a monthly SIP of Rs 5000 in stock markets. The best way out is to follow your chosen investment strategy learnt from best certification courses for stock market and proceed along with it.
Avoid timing the market & Review periodically
Majority of the retail try to time the market by averaging down. It is a risky strategy that might lead to losses as one cannot figure out exactly where the markets will reverse. Do not try to predict market trends or anticipate short-term fluctuations. Instead, focus on long-term investment strategies that are based on sound principles learnt from best certification courses for stock market. Review your portfolio periodically and adjust, as necessary. Eliminate the stocks whose fundamentals have deteriorated.
- Start as early as possible
Investing rewards people on a first come first serve basis. The earlier you start investing, the more time your investments get to grow with compounding. The biggest mistake which people do is they wait until they have a large sum of money to start investing. Even small amounts can make a big difference over time through compounding taught in stock market courses online with certificate.
Seek advice if stuck & right mindset
Investing can be an emotional rollercoaster. Never let your emotions guide your investment decisions on the basis of fear or greed. It is advised to stick to your investment strategy and plan and keeping your emotions in check. If you are unsure about how to invest your money, seek professional advice. A financial advisor or mentor from best certification courses for stock market will assist you in managing your portfolio and creating a personalized investment plan that aligns with your goals and risk tolerance.
By following these 10 tips with the right mindset, strategy, and approach, anyone can become a successful investor through a free stock market course.