WHAT SHOULD I KNOW BEFORE INVESTING IN STOCKS?

Investing in stocks is an interesting decision that you might take at some point of your work life. Though it sports a promising outcome, stock investment includes its own dangers which can be easily tracked and solved. But, it is to be remembered that you have full knowledge on what you are investing and how much you are putting in. Being a 19 year old, I am already excited to start investing and buying shares from companies, so I am pretty sure investing in stocks is everyone’s dream of the day. In order to actually give a nod and start the whole investing process, you need to at least keep in mind the following criteria,

1. Stocks represent actual money. Always be sure of the company that you are going to invest in. When you buy some share of stock, you are buying a small part of the firm, so it is of utmost priority that you choose the correct firm.

2. It is recommended that you choose already booming companies while purchasing shares of stock so that you have minimal guarantee that you are not going to lose your money even though the market starts falling down.

3. It is a well known fact that the best time to sell your shares is during the month of Christmas so that you make the best profits off your investments. Once you sell your shares back, you are always free to invest your extra income in another trustworthy firm of your choice.

4. Before actually buying your desired shares, you could make a background check on the company and look into its present stock rates, its per-capita, turn-over range for the year and the profits on each share of stock. Basically, you have to go through the company’s annual reports for a complete picture.

5.  Constant surveillance of the ups and downs in the daily census is considered a good habit if you are truly into investing in stock.

6. Some companies/small scale business groups that are new at the market promise you with huge profits at less investment rates. It seems a fair deal but it is quite risky that you give a green signal to such offers in the investment sector.

This particular mode of investment is a really fragile move that you need to take choosing the best of choices available. Contacting a professional stock broker before you actually sign the deal is considered to be the best option that you could choose while diving into the world of investments. It is also important that you do not discourage yourself when your first investment was not as fruitful as you expected it to be. Just say to yourself, ‘better days are just around the corner’.