2 Tips to Invest in Stocks

[raaman]

If you want to invest in stocks, then you must remember these two main things.

1. Choose the right company:

Choose a good company which has increased profits and has earned at least 20% return on its shareholders' capital. Ideally a long-term investment (more than five years) allows you to participate in the growth of the company.

In the short term (3 to 6 months) the performance of the stock is driven less by the core philosophy of the company and more by the market price. Whereas in the long run the relevance of the true price diminishes.

2. Be Disciplined:

Investing in stocks is a long learning process, in which you learn from your mistakes. There are some facts that can make the process easier.

 

[btaliat]

You are given the right tips. The company one chooses will determine the gain one may gain and the other thing is that one should not choose a nascent company. Nascent company may fold up or may not even withstand heavy shareholders dividend especially if the gain is not that coming as planned. And one needs to prepare for both sides while investing. Because investment comes with either loss or win.

 

[Setho]

I think one very important thing that you should know about investing is that you should not invest in too many things at the same time. Whenever you are choosing a company to invest in you should make sure that they have a very good model and they can be able to weight of competition at anytime.