During Covid Pandemic lots of people got interested in Stock Market and opened a Demat account for Investing their hard earned money in stock market for rapid growth. But Investing in stock market is risky and can be a reason of mental trauma, if you won’t do your study properly about the stock market. Here are the some advice for the beginner stock market retail investor.
| Sr. No. | Tips | Explanation |
|---|---|---|
| 1. | Start with small amount | Don’t invest all your money in one go, first invest small amount then slowly and gradually increase the investment. |
| 2. | Diversify your portfolio | Don’t invest all your money in just one company or industry, try to diversify your investments in different stocks as well as in industries. |
| 3. | Try to invest in blue-chip companies | Try to invest in Blue-chip company, because they are reputed companies as well as they are in stock market since long time and also financially strong. |
| 4. | Avoid free Tips/advice | Following friend/colleague advice is the biggest reason people lose money in stock market. Doing proper research and fundamental analysis of the stock is quite necessary to have a good return as well as safe investments. |
| 5. | Know what to expect from the market | Invest in those company and industries, in which you have done your research and analysis and you know that those stock will perform better in future. |
| 6. | Be disciplined and follow your plan/strategy | Always try make target or plan how you will buy or sell and when you will buy or sell your stock, if your portfolio doesn’t perform better then keep patience and try to know the reason that a particular stock or industry is not performing, because in stock every bullish and bearish market has reasons, nothing happens randomly. |
| 7. | Investment at regular interval is best strategy | Don’t invest lump sum amount in one go and wait, investment requires time so invest slowly, every stock shows some fall of 2-3 percent and even some 10%, so invest more amount, also know the reason why that stock fall. |
| 8. | Always try to learn new things about the market | Learning about stock market and its stocks and companies or industries is the best way to stay updated and securing your investment from mis happenings. |
| 9. | Invest in what you know about | Try to make realistic target, because having unrealistic target will result into huge loss, so create reasonable targets. |
| 10. | Don’t follow blindly the crowd | If a stock is going up and your friends are investing in it not always means that fundamentals of that stock are good and it is investable company. |
