Investing is not complicated. The problem is investors are often tripped up by emotion, speculation and poor advice from others.
Follow these do’s and don’ts to start investing right.
DO YOUR OWN Research
Before Investing your hard-earned money into a stock be sure it’s worthy in long term. Use some basic qualitative and quantitative parameters to judge the stock performance.
DON’T Look at Short Term Returns
The more the period of investment the greater the probability of higher returns and lower are the effects of market volatility.
DO Know Your INVESTMENT REQUIREMENT
Make sure you understand your financial goals, your risk appetite, and your long-term Objectives.
DON’T Take Decisions based on Emotion
If some stocks are no longer performing well or are no longer suited to your needs, rebalance your portfolio.
DO Invest for the Long Term
Market volatility matter less and less the longer you hold them.
DON’T try to time the markets Take advantage of cost averaging by making regular investments.
DO Diversify Your Investments
Studies indicate that the main driver of long-term investment success is proper, broad-based asset allocation.
DON’T Pay too much Attention to Market Rumors
DO review your investment strategy regularly, ideally with your investment advisor.
Investing your money is the key to creating wealth for your long-term goals, and it doesn’t have to be a stressful or arduous process.