Tips for Beginners to Invest in Equities

Investment in equities has become popular recently as stock markets continue to perform well beyond the expectations of investors. Earlier, stock market was looked upon as an avenue for day trading and quick investments by a limited number of people who were aware of its working. However with the dematerialisation and electronic trade coming into the picture, several new investors now prefer stocks and equities as a new avenue for investment.

Young investors are naive and unacquainted with the movements of the market. As a result, they have a higher tendency of losing money due to frisky investment decisions. To make investment simpler for you, we have shared these beginners’ tips for trading in the stock market.

1> Stick with the Fundamentals

As you are new to the market, you may not be able to understand market movements. Thus, refrain from analysing the technical charts at first and stick to the fundamental concepts. By keeping a tab on the news and having basic understanding of different businesses, you will be able to make sound equity investment decisions in the beginning.

2> Have definite expectations

Stocks markets have soared significantly over the past few years, promising investors consistent double-digit returns. Avoid getting influenced by this fact and start slow by having definite expectations. This will keep the losses in check.

3> Get ready to hold stocks for a long time

If you are an investor, then patience is expected of you. Patience here refers to longer holding periods. To mitigate market volatility and consequential losses, it is recommended to hold stocks for at least a year before shorting.

4> Refer to Tips

On availing a trading account with a bank or broker, you will receive trade updates and tricks. Though most of the tips are for day-traders, you can still follow them and end up making viable investments that will offer good returns in the future.