Making Investments in Stock Market should be done after a lot of research or let a financial expert do it on your behalf. If you want to go alone and make the investment, then here are a couple of tips that you should definitely use.

If you have never invested in the Stock Market, then keep it simple. To begin with,  make small investments in Stock Market. Buy stocks of the companies that are good stocks and have provided a considerable return over a period of time. For this, you would need to identify stocks. It’s important to have a time horizon. Remember that the investment needs to give you a return too. Aim for the return that you want or need. Returns should be calculated with a view on the future.

Have a goal and a time horizon for buying and selling Stocks

While some stocks give great returns, others are known as conservative funds that will fluctuate the least. When the Stock Market is going up, aggressive funds are the way to go. However, in the downtrend, the conservative stocks are a better choice. Stocks should be held for a period of time. Decide the period for which the stocks should be held. While some stocks can be held for 1 month, others 6 months, others for a period of 1 year. Some investors will buy and sell when the Stock Market enters a particular horizon. At that point, they can make the best profits.

Also check out How to save money on Tax Preparation posted by us.

Diversify the Portfolio

Remember it’s important to have a diversified portfolio. This will cushion the fall during the bad times, also provide extra returns. Conservative stocks are good, but it’s the aggressive funds that will generate the best money. Placing all your eggs in the same basket can have disastrous consequences. For those investors that are seeking a really aggressive portfolio, having at least 1/3rd aggressive stocks is the way to go.

Right Time to Sell

This is a decision that stumps even the best of Stock Market analyst. The decision to sell is dependent on the fundamental / strong financial position of the company, the Stock Market conditions and how the general economy is performing. Stocks should be sold when they have reached the investor’s personal goal levels, or when the stocks are giving high returns or hen the investors wish to exit from the Stock Market.

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