Making money is not easy. Doing so in financial markets is, even more, difficult. A normal investor faces a lot of impediments before getting started. However, the good thing is that there are some best practices that one can use and make profits in the financial markets. Let us explore them one by and one and see how you could start making money too.
- Be prepared to learn: Get yourselves some good books. Security analysis by Benjamin graham and any book written by Peter Lynch are akin to the Bible of the stock markets. Remember that great things start from learning, and while you would find many tricks and tips, there is no substitute to your better sense of judgment and you must base your decisions on that, no matter what.
- Follow a mentor: People take this advice by its face value. Following a mentor essentially means getting a good coach. Now it doesn’t have to be a human coach. You can easily get assistance from either a virtual coach or use some good resource or a website. You can use apps like IIFL Markets to get started and watch a lot of informational videos. They would help you a lot about stock markets and the best practices. You can keep a portfolio watch which is available on apps like IIFL markets and Moneycontrol and keep a track of how your decisions are flaring up.
- Making a sound investment plan: Don’t go into markets with an emotional mindset. Be sure of what you are doing and do a lot of ground work. Prepare a lot of plans, the one on diversification and your investment strategy etc. The plan must be very comprehensive. A crucial and a very important step which is often ignored and never let your sentiments take over your senses, no matter how attractive the deal seems. That’s one of the golden wisdom of warren buffet. It is much easier said than done.
- Use technology: Using technology is indispensable to the success. Today we have far more resources than people ever had before. We have a wealth of information on our fingertips and our cellphones. Be sure to harness that and make the most out of it. Select a good website and a good mobile app to get started. When it comes to the mobile app, choose the one that you normally trade with so that if you ever want to get started on the script, you can just swipe and complete the trade without wasting time in calling your broker. Stock markets are volatile and even a few seconds of delay can wreak havoc on the script.
If you follow these tips, then you should be reasonable set to hunt down the financial jungle. If you don’t see a utility in getting a personal investment advisor, you have no other option but to read and leverage technology. We are living in the most advanced time right from the age of human evolution so make the most out of it.