So You Would Have Thought What Are Basic Rules Of Investing We Should Follow While Buying Stocks Or Whether About Other Investments. First If You Havent Read Our Earlier BlogPosts I Would Recommend To Read That First To Gain Basic Knowledge Of Investing. A Thought Might Have Came To Your Mind That What Are Basic Rules Of Investing We Should Follow If You Are Curious One. Our Post Is To Answer This Question In Simplified Way. So Investing Is a Very Large Topic And To Write All Rules Of Investing Is Not Possible At One Time So We Are Introducing You Some Basics That You Should Remember While Investing. So There Are Two Rules Of Investing Said By Benjamin Graham Who is Known As Father Of Value Investing About Which We Would Be Discussing In Other BlogPosts. He Says That Rule No. 1 Is Never Lose Money And Rule No.2 Says Never Forget Rule No. 1. This Might Not Be Clarrifying All Your Doubts So Lets Discuss Some Rules That Prevents Loosing Money In Stock Market. So a Rule Of Investing Says That To Minimize Risk Diversify Your Portfolio. This Rule Means That Never Invest All Your Money In One Stock Or Any One Platform And Form a Well Divided List Of Stocks That Is Known As a Portfolio This Minimizes Your Risk Because When You Invest Your Money In 10 Stocks Rather Than One You Minimize Your Risk As Your Selected 1, 2 or 3 Companies Might Perform Bad But Your Remaining Companies Will Recover This And Will Give You Huge Profits If You Correctly Do Research And Analysis About Them And You Also Get The Chances To Earn Profit From 10 Different Companies Rather Than 1. Another Rule Of Investing Says That Market Crash Is An Opportunity Not An Misfortune. This Means That People Panic As Market Falls Down Because They Have Fear That They Might Loose All Their Money But Intelligent Investors Knows That It Is a Great Time As You Get Most Of The Quality And Good Stock At Cheap Prices And When Market Rises They Make Huge Profits As They Had Bought The Shares In Cheap Prices And Sold It At High Prices To Make Huge Returns. One Another Rule Of Investing Says That Do Regular And Disciplined Investing And Not Invest All Your Money In One Time. This Is An Good Rule To Follow As An Beginner Beacause When You Do Regular Investment You Gain The Habit Of Disciplined Investing That Minimizes Your Risk As You Dont Have The Fear To Loose All Your Money And You Gain Confidence About Profits As You Are Not Investing All Money In One Time. One Last Rule Of Investing Says That Dont Invest In a Company Whose Business You Dont Understand. This Rule Is Most Important Because When You Cant Understand What Business Company Is Doing You Cant Become Sure That This Company Will Give You Returns And It Could Make Your Risk Higher. So If You Follow These Basic Rules Of Investing You Can Minimize Your Risk And Gain Higher Returns. To Gain More Knowledge About Investing Read Our Blog Daily ,We Will Meet Next Time.
Untill Then,
Keep Learning And Stay Safe Stay Home
0 Comments