Buying Shares – Chapter 16: Tips for Stock Market Investing

This is chapter number 16 out of 19. Read the rest:

Read Buying Shares – Everything that you Wanted to Know but were too Scared to Ask – Chapter 1: Introduction
Read Buying Shares – Chapter 2: What are Stocks and Shares?
Read Buying Shares – Chapter 3: Different Classes of Stocks
Read Buying Shares – Chapter 4: What affects ‘Stock Prices’?
Read Buying Shares – Chapter 5: Stock Markets
Read Buying Shares – Chapter 6: Stock Exchanges, Why are companies listing on a stock exchange today?
Read Buying Shares – Chapter 7: Stock Indexes – What do they stand for?
Read Buying Shares – Chapter 8: How do I Trade Shares?
Read Buying Shares – Chapter 9: What kind of a Trader are you?
Read Buying Shares – Chapter 10: Investing Methodology: Planning Trades and Picking Stocks
Read Buying Shares – Chapter 11: Placing an order – The technicalities involved, Step 1 – Open a Share Dealing
Read Buying Shares – Chapter 12: Step 2 – Research the Stocks
Read Buying Shares – Chapter 13: How to Read Quotes of Shares
Read Buying Shares – Chapter 14: Buying and selling shares- how’s it done?
Read Buying Shares – Chapter 15: Buying Shares – The Rules

There are always risks involved in trading and buying stocks is no different, you can help minimize that risk though, following the following points:

Have a Plan and Stick to it

Build a practical trading plan. If you don’t have a plan in place, the long-term conclusion will not be a good one. You’ll waste more time fixing errors than in making well turned-out investment decisions.

Invest Often

To make the real money in investing you need to make multiple trades. Depending on whether you are a short, mid term or long term trader you will be making numerous trades each day, week or month. Keep your hand in the game and keep researching the companies you invest in.

Keep Transaction Costs Low

It’s vital to keep dealing costs near to the ground; or else those expenses will eat up your profits. Repeated trading will accumulate fees, some brokers fees can be negotiated if you are trading regularly with that broker.

Don’t Overextend Yourself

Widen your buys over a few days, weeks or months. This will help you to obtain benefit of the best prices over time.

Spread Risk

It’s a good idea to diversify your risk because not all industries and markets deal with the same setbacks at the same time.

Do Your Research

If you do the proper amount of research into the market and in the companies you’re interested in investing in, you’ll be amazed at just how much this work will help you in the long run. A good investor is an informed investor.

Leave Emotion and Stress at the Door

Don’t get stressed or emotional when trading as this jeopardizes your trade, likewise if you’re feeling angry maybe it’s better to leave the trading alone for a while. The biggest mistakes happen to traders when they are pressurized.

Read Buying Shares – Chapter 17: The Difference between Stocks and Shares
Read Buying Shares – Chapter 18: Q & A session
Read Buying Shares – Chapter 19: Glossary words to learn