(12) Monitor Your Portfolio Regularly
It is one of the most necessary rules for investing money in stock markets. You can’t invest your money in stock market without monitoring your portfolio for a long period of time.
Portfolio monitoring is one of the most significant steps involved in stock investing. This is because value of stocks are greatly affected by national & international factors. These factors may be directly or indirectly linked to the stocks you have invested.
If you lack sufficient amount of time to manage your portfolio then it will be much better to take the help of a professional financial planner or someone who can monitor your investments for you.
However, if you are unable to do that, then stock investment is not for you. You should go for some safe or less risky investments.
(13) Buy Low & Sell High
It is one of the most simple rules for investing money in equities. But, majority of investors are just doing the opposite. Your success & failure in trading activities will largely depend on your consistent ability to buy low & sell high.
You should be ready to buy stocks at low prices only after researching all financial statements & analyzing prevailing trend in the stock.
However, you should avoid buying stocks purely on the basis of future prices.
Image Source: Shutetrstock