(10) Never Get Affected By Emotions
It is one of the very important rules for investing money in stock markets. Several investors are losing hard-earned money in share markets. It is only due to their inability to control emotions.
Some of the emotions that can bring you losses include fear of a possible downtrend, as well as greed of excessive stock upside.
In bull market, your emotions to make money quickly are difficult to control. This result in speculating unrealistic targets of stock price or creating heavy positions in derivatives without understanding the risk involved.
These emotional & unrealistic investors are the first one who losses their money heavily as soon as the market sentiments reverse.
(11) Invest Only Surplus Funds
It is one of the great rules for investing money in equities. Equities are highly volatile in nature & same is true for any investment that is made in shares.
If you want to invest your money in equities to make money quickly in markets then it will be much better to invest only the surplus funds. Your surplus funds are those which you can afford to lose in any negative circumstances.
You should never invest your emergency funds in shares as markets never provide any guarantee of returns for invested money.
- Stock Market Rules: Shutterstock