(4) Avoid Day-To-Day Panic When Your Goals Are Long-Term
It is one of the most critical rules for investing money in stock markets. Share market is highly volatile in nature. Therefore, capital erosion in short term scenario is a normal process.
You should avoid day-to-day monitoring of your stocks. It is particularly true if your investment is for long term scenario.
You should invest your money in a diversified portfolio of fundamentally strong shares. A strong & diversified portfolio is usually unaffected by temporary downtrend in the long run.
(5) If You Need Cash In Short-Term, Never Invest In Stocks
It is one of the authentic rules for investing money in equities. Investment in equities can give reasonable amount of profits only when kept for long period.
A long-term scenario also provides you an opportunity to shift your investments from lazy stocks to highly active stocks.
However, if you will need your invested money in short-term then probably you are likely to book loss in your investments.
- Stock Market Rules: Shutterstock