25 Basic Rules For Investing Money In Stock Markets

Basic Rules For Investing Money In Stock Markets Stock analyst telling the basic rules of investing money in stock markets.

(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.

[Read Also: 15 Ridiculous Share Trading Mistakes In Stock Markets]

(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.

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1 Comment on 25 Basic Rules For Investing Money In Stock Markets

  1. Narnolia S. // June 22, 2017 at 12:52 PM // Reply

    This is a really informative blog. All investor should know these 25 basics rules for investing. I truly appreciate your rule #13 where you have stated ‘Your success & failure in trading activities will largely depend on your consistent ability to buy low & sell high’. Look forward to more such informative write-ups.

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