Ten points to note before investing in stocks
Stockbroking can be a profitable investment avenue largely misunderstood by many. With the digital age and ease of online investing, questions abound about how it works, who should invest in stocks, what kind of stocks to buy, when to sell and whether it should be considered for short or long term investing.
To answer some of these questions and shed more light on the science of trading in stocks, let us consider nine points everyone should note before investing in the Stock Market.
- You are buying more than just shares, you are buying into a company
- Buying a stock makes you a shareholder which means as the company profits, you profit as well. If the company does not profit, you also do not profit.
- A stock’s price is determined by the company based on their industry, economic environment, customer base and political climate.
- Before investing, it is wise to research into the organisation you are interested in as well as other stock market updates within your reach.
- Your gut feeling or perception is important in stock broking. Never rely on it alone, always get expert investment advice as well.
- Have an investment plan that will guide your investment choices. Ascertain whether or not you want to invest long or short term.
- Never invest all you have at once. Always have some money reserved for opportunities that come up.
- Shares should not constitute all your assets, diversify your investments.
- Monitor your stocks, even if it is a long-term investment. The stock market is dynamic and ensuing developments might affect you in the long run.
- Always go through the right channel when investing in stocks. Speed of execution, availability of advice, update speed and information supply are some of the things to consider when selecting a stock broker.
With all the above checked and confirmed, you are ready for a rewarding stock trading experience. Sign in to ARM Stocktrade, and enjoy the ease of investing from the comfort of your home, via any internet enabled handheld device. With real time updates and access to research reports, you have everything you need to make favourable stock trading investments.