25 Basic Rules For Investing Money In Stock Markets

Common rules for investing money in stock markets. Stock analyst telling the basic rules of investing money in stock markets.

(14) Stock Market Is Always Right

It is one of the most ignored rules for investing money in stock markets. Stock market is always considered to be right in deciding the price of a stock.

You can make money in markets only by making positions as per the prevailing trend of markets. You should never try to go against the market trend.

You should go long when the direction of markets is upside. Similarly, you should go short when the direction of markets is downside.

As long as you are moving in the same direction of the market you will be going to make money else be ready for huge losses.

[Read Also: 20 Amazing Ways To Make Money Fast With Investment]

(15) Trend Always Changes

It is one of the most realistic rules for investing money in equities. Every market or equity that is going up will go down someday. Similarly, most market & equity that is going down will go up after the reversal of trend.

The more extreme the move up or down, the more extreme the movement in opposite direction will happen on trend reversal.

You should be wise enough to identify signals before trend reversal to derive maximum profits for your right investment at the right time.

Image Source: Shutetrstock

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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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