(6) Have Realistic Expectations
It is one of the most necessary rules for investing money in stock markets. Every investor hopes for getting best returns from his/her equity investments.
But, you should never expect for getting unrealistic or overestimated rate of return from your investments. A great bull run can give its investors an opportunity to make huge returns in every stock they hold.
However, you can’t expect the same types of returns from equities every time. A realistic price target of equities can only make money for you.
[Read Also: 20 Great Reasons To Invest Money In Stock Markets]
(7) Never Try To Time The Market
It is one of the most basic rules for investing money in equities. No one even a smart investor is not able to predict the direction of markets successfully and consistently over multiple stock market cycles.
The process of catching the top levels & bottoms levels of a share are always difficult to work. You should try to trade as per the current direction of market.
You should avoid sitting for lower levels to buy and higher levels to sell your shares. However, a diversified portfolio with a long term scenario is the best investment strategy to make money in stocks.
- Stock Market Rules: Shutterstock