Stock Market: 10 things to know before investing

10 Tips for investing in stock market

TeknikalRaman Finance & Business POSTED BY: Ranjeet Kumar PUBLISHED: Jun 21, 22

1. PRIOR TO INVESTING, SET GOALS Goal-based investing can assist you in accomplishing your financial objectives.

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2. UNDERSTAND THE BASICS OF THE SHARE MARKET Before you put your hard-earned money into the stock market, familiarise yourself with the fundamentals.

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3. CONDUCT DUE DILIGENCE AND RESEARCH Investors don't always complete their homework on the firm they want to invest in.

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4. CHOOSE COMPANIES THAT ARE FUNDAMENTALLY STRONG. Consider investing in firms that have solid fundamentals.

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5. DO NOT BUY ON THE BASE OF RUMOURS. Investing based on rumours is something you should avoid at all costs in the stock market.

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6. ESTABLISH PROFIT OBJECTIVES No one can accurately time market fluctuations since the stock market is unpredictable and turbulent.

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7. USE RELIABLE INTERMEDIARIES TO INVEST You must open demat and trading accounts in order to invest in the stock market.

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8. STAY AWAY FROM RISKY LOW-PRICED STOCKS. Penny stocks, or low-cost equities, appeal to investors because they appear to be bargains.

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9. BE AWARE OF YOUR RISK TOLERANCE Risk tolerance refers to your capacity to withstand market swings and their impact on your investment's overall worth.

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10. DIFFERENTIATE YOUR INVESTMENTS 'Don't put all your eggs in one basket,' as the phrase goes. This is true for your investments as well.

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