You have been released a sum of money, and you have nothing to do with it, your co-workers keep talking about it, your neighbor has taken the whole family abroad as a result of you are just interested and want to give it a try.
You decided to try and invest in the stock market. Statistics show that most people who invest their money in the stock market – lose. To try and be part of the minority percentage and tip the scales alongside the profit, I have collected ten tips – “tips for the novice investor.”
1. Start-up capital – Make sure you invest money you do not need in the short term. Investing in the stock market requires time and is not a substitute for savings.
2. Knowledge – Knowledge is the key. Read about the companies whose securities you want to invest in. Please get to know the management and examine their personal past and the company’s past. If you do not believe in a company, do not invest in its securities.
3. Professional advice – Seek professional advice. An investment advisor is a person who has learned and is qualified to advise how to invest funds in the best way. Ask him questions and consult with him. You can also consult and get opinions on the leading websites in the field.
4. Iron Rules – Set iron rules for yourself according to your trade nature and adhere to them. Set yourself “loss-cutting” points, entry and exit points, etc. These rules will save you in times of uncertainty.
5. Diversification – Make sure to diversify your investment portfolio and spread your investments across different channels: real estate, banks, technology, bio-med, etc. Also, spread it between different markets: Israel, USA, Eastern, Europe and so’.
6. Virtual Portfolio – First, build a virtual investment portfolio and examine yourself. Make attempts and check when you are ready to jump into the deep water.
7. Go with a trend – Follow a market, identify the trend, and flow with it. Do not try to go against it.
8. Tracking – Make sure things are going the way you thought. Please keep track of the security and examine it over time before entering it.
9. Building a portfolio – There are many financial tools. There are mutual funds, ETFs, stocks, bonds, forex, options, and more. Use the financial tools and build an investment portfolio tailored to your character, according to pre-determined goals and while determining the portfolio’s composition.
10. Patience – In the capital market, you need patience and a lot of it. Statistics show that investing in stocks over the past 15 years has yielded the highest return. Be patient and examine the investment portfolio every few months. If you need to change, do so. But not in a hurry.
In conclusion, it is not easy to make a profit in the capital market. But this does not mean that this is not possible. The above ten tips will help you get off to a better and smoother start in investing in the capital market.