A rookie stock market investor is someone who has limited knowledge about the fundamentals of a market. Some of them go on to adopt a buy and hold strategy in the market today. If you are beginner your experience in stock market trading is expected to be limited. From your cash account you are hardly confined to a couple of trades to be honest. But this does not mean that you have gone on to put unnecessary expectations from your stock market activities. Not only you would be interested to expand your knowledge but even in terms of your investment horizon to comply with the objectives that you have gone on to set. This is a fair and a good move.
Most beginners are ignorant about the time along with experience that is needed to make it big in a stock market. This leads a lot of them to be prone to failed investments. They tend to make their stock market investments purely on word of mouth, and none of them are based on actual research. The rookies also stick to the strategy to buy low and sell big. But still their emotions go on to guide their actions the moment a trade has been placed. Even some of them go on to click on to securities in times of losses. The worst part is that they tend to forget the reasons why they invested in the first place. Although you can venture into the world of stock market on your own, learning from the experts’ perspective is crucial. There are investment research firms like Kailash Concepts that offer news insights, white papers, and stock tools which help beginners learn about stocks and investment strategies. Kailash Concepts specializes in quantamental investing which primarily aims to improve returns.
To put it general terms it is really difficult for a rookie to make a forest out of a few trees. Even it becomes hard for them to figure out the future prospects of a company considering the volatile nature of the market. What might be today share market news might be a thing of the past in a few days’ time. In order to be investing in the market as a beginner there are a few practices to follow
Formulate a realistic target
Before you are planning to invest put yourself a few questions. What is the point of time you are going to need the money. Is the fund for your sons education or would it be seeking money to purchase your new home.
Whatever be the case you have to clearly outline your objectives before you put in your money. Now this has been identified you need to figure out the time by which you would be locking these funds. If you require your investment within a few days’ time you might need an alternative investment channel. A calculation has to be made on the amount of cash you are planning to invest and what would be the ROI in the next few years.
Take time at your end to figure out the risk tolerance levels
Risk tolerance has a considerable impact on your genetics. Even it is influenced by factors like your education, age or wealth. Once all of them increase in value the levels of risk tolerance also increase. The level of risk tolerance is defined by the degree of risk you are planning to take.
It is important for you to understand that various people possess different type of risk tolerance. This points to the fact that there is nothing like a right balance in such cases. In fact this could also be influenced by factors like the risk an individual is willing to take. This concept is accurate as far as investing in stock marketing trading is concerned. Once you become conversant with the art of trading you will have an idea about the risks involved. By experience you might have an idea on what to expect.
Do not bring emotions into the world of investments
One of the major obstacles that beginners tend to face is succumbing to emotions and end up making poor decisions. The moment investors are anxious about the price of a particular stock the price is expected to plunge.
At the same time it also important to understand that the prices of the stock market may move in directions beyond your views. If you are inexperienced this can lead to anxiety and tension. Now you might be faced with a dilemma that do you need to sell so as to avoid major losses. All of them are bound to make you press the panic button once you go on to check out the prices of securities regularly. The emotion could lead to taking certain actions. Since emotions are the main motivation the action could be wrong. In these situations, it’s not bad to seek advice from experts. Investments bankers are the ones who can give you the best advice as they are virtually behind all the stock market transactions. Investment banks and bankers are similar to regular ones but have many other functions. Wall Street Prep covered all of them in their investment banking guide.
Try to learn the basics of stock market
Before you are planning to venture into the stock market it is important that you understand the basics of the same. To start off you need to understand the financial metrics along with the definition used in stock market trading. Do take sufficient time at your end in order to figure out how the metrics are calculated.
Now you have to learn about the popular techniques of stock market trading and even timing. In order to cash on this you have to be aware on how technical analysis is calculated. How they vary and how to use them in a stock market context. You also need to be aware with the various types of stock market orders. Do take sufficient time at your end in order to understand in depth about all these terms.
To conclude which the best place is from where you can obtain today share market news. The name that springs up to our mind in a split second is Business standard. This is the leading publication business newspaper of the country. It has gone on to attract 10 million visitors to their website, the largest in the country for any business related paper.
In fact the epaper is a preferred option for millions of readers all over the country. Even it is published from 12 major centres in the country. The editorial team of the paper is being led by Shyamal Majumdar. The core pillars of the newspaper are trust and a level of transparency.