Business Technology

Eight Things To Know Before Investing In Stock Market

stock market

Have you checked the exchange rates today? You might have probably had a breath when you did – a deep one precisely! With or without the least possible acquisition of financial intelligence, the daily news headlines are more than enough proofs and convictions for any rational human to hunt for more than two, (maybe more than  three) sources of income. Meanwhile, it could be, in the least,  really  challenging to make a great choice of alternative revenue streams. This is especially on the accounts of knowledgeability in the prospective fields one may try to venture into.

The stock market, overtime, has served the purpose of passiveness as its credibility and security as endeared it to the hearts of potential investors who are on the lookout for multiple streams of passive income. Before you assure yourself of your readiness to take this ride, you may want to put a few things into consideration;

  1. Knowledge leads, action follows

That everyone is talking about it or doing it is not a visa to get into it too! Successfully investing in the  stock market would require that you read, research and learn the basics of it. The knowledge of basic terminologies relating to the shock market are fine too, so long it helps you to communicate effectively with your broker so that he can captain you excellently as you sail on through the journey of stock investments.

In essence, the chase for knowledge is the first step to being double sure you are ready for this journey!

  1. It is not a get-rich-quick scheme

It is understandable that the every increasing bills are driving you so ‘crazy’ that you want to hit it big as soon as possible but if you are super desperate to achieve an equally investing back account balance, stocks might be a won’t choice for you! Uh-uh…

The stock market comes with its risks, highs, lows, booms, crashes, uptrends and downtrends. These is majorly factored by the market’s volatility – investment in knowledge would help you understand this better. As you grow, you get better at making trading decisions which help you reduce your risk of losses or low profits but, until then, enjoy your ‘little’ beginning!

  1. Start with funds you can overlook

Everything about life lies in the decisions we make and these decisions are empowered by how much risks we are willing to take. Before investing in the stock market, be ready to ‘lose’. Creepy, yeah? I know right. The reasons to fail has proven to be a strategic attribute of winners. These helps you to murder your phobia for losses and contingencies.

The moment you are ready to win is the moment you don’t fear failure – this is the moment you are ready to invest!

  1. Say hello to emotional fitness

Like it or not, money has a way of toying on your emotions. Little winner the rise and fall off the stock graphs are similar to the movement of a heartbeat. ( Did I just laugh?). You know it’s a serious issue when you hear of awesome people committing suicide after losing substantial amount of their fortune.

Not because you are anything losses, but because you want to be ready for them SHOULD they surface, it’s high time you paid attention to your emotions. Poorly managed emotions rob you of the pleasures of today by sponsoring an anxiety for the morrow.

Get this done with and you are getting ready to be an investor!

  1. The stock market is not a gamble.

I could have a placard and roam the streets of New Delhi with inscriptions practically screaming, ‘THE STOCK MARKET IS NOT A GAME OF LUCK!’. The market is built on principles, systems, structures that need be followed as excellently as possible in order to get the best of it. With the help of your brokers in South Africa, you can be assured of a not-too-bumpy ride that will playoff at the end of the day – any day you choose to opt-out of this exciting endeavor.

  1. Do not leave all your eggs in one basket

Okay, you must have heard this in school – during the English class on idioms and proverbs. Do you know this applies to every area of life including the stocks market. It is wise to spread your risk level by investing your spare funds in more than one portfolio. It is practically impossible to lose all, in case of contingencies. Meanwhile, it grants you a greater percentage of profit too. Again, based on how expert your broker is.

  1. Fraud is avoidable

That may sound funny but it is more serious than you know – or think. A person’s desperation may be a very strong tool in the hands of fake brokers to seize and abscond with the funds of their ‘victims’. As much as we always blame the fraudsters, we forget to put a fair share of the blame of desperate investors too. The sooner a potential investor understands the basics of the stock market before embarking to invest, the earlier and better he safeguards himself. Before putting out those innocent funds, it is best to make appropriate research on the background of the broker in view and ask questions other than ‘Are you sure my money is safe?’. You know why, you know the answer to the question already!

  1. Have a plan

There’s no house that is built without a proper representation of the final architectural view in the mind of the builders. This applies exactly to stocks. Ask yourself and be sure of how long you plan to invest, what you are investing for etc. Having a plan is the best way to our checks and balances on yourself and how you decide to direct your funds.

These are basically to put you on track but further research would not do you bad, would it? That being said and differed, it is now most likely that you are ready to invest in stocks. My wish for you? Enjoy!