Friday, 20 February 2015

If you are going to start investing in stock market than first Know the basics

If you are Entirely New to share market than Understand How to start ....

To succeed in share market, It is important to start with a good understanding of How share market investment works.
This financial article will lead you through the process of making investment determination.

1.   Set your financial goals 

First understand why you are investing. determine your goal so that you can understand the difference between today where you are and the rate of return needed to get there .

2.    Determine your risk tolerance

Action taken by you against your need for returns is the risk needed to earn. Risk is the function of two variables : Ability to take risk and your willingness to do.

3.   Learn about the market 

Before investment spend much time for analysing about share market and performance of the companies .

4.   Formulate your expectations for the stock market 

In this step that need you develop the power to account for a extraordinary amount of financial data about market  performance.

5. focus your thinking 
You should try to develop expectations about the market and the companies sectors.

6.  determine your assest allocations 

This step very important because in this determine how much of your money you will put in which types companies (sector) investment.

7.   select your investments

You must decide on that based on your macro and micro expectations whether are there companies or different country you should invest in more or less.

8. buy your shares
After deciding your preferred sector of companies and how much of ehich shares to buy, this time to buy your shares/stocks.

9.    Establish benchmarks 
Basically Benchmarks are based on the performance of various market index. which allow you to conclude whether your investments are giving better return than the market overall.


10.   comparison between performance to expectations 

You need to compare the performance of your investments to the expectations. you established for it to determine its worth.

11.    Be Alert and update your expectations

When you have bought shares, you  must monitor the performance of your investments and the market.

Hope this article will help you a lot :)

If you have any query than mention in the comment box So that we can discuss.....

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