The stock market is often seen as a place to make easy money. However, investing in stocks requires time discipline, discipline, and a systematic approach to investing. It also requires patience and a long-term investment horizon.
It’s easy for investors to be enticed by the promise of high returns and a quick fix, but investing in stocks is an extended process that has many ups and downs. However, the rewards of investing over time can be significant. Here are some share market strategies that novice investors should be aware of before they begin.
Don’t be a jack of All Trades
New investors often make the mistake of switching from one strategy to another. This could be an expensive mistake, particularly for those who are just beginning out. For instance, some newbies attempt to be a “jack of all trades” by switching from buying and selling short-term investments (options and futures) to investing in US stocks. This is risky as well as expensive since it entails many charges for transactions, currency conversion charges, and exchange rates.
Use a single investment plan instead and focus on the value of a stock over the long run. Avoid overreacting to short-term events and paying attention to price fluctuations, and make sure you keep track of your stocks at least once per quarter (or when you receive quarterly reports). And most important, don’t be caught in the search for the next big thing.