Stock investing is a grand way for Indians to build wealth, but it can have its loss. This list spells out the fundamentals every stock saver should remember.
• You are not purchasing a stock; you are purchasing a company.
• The most important reason you invest in a stock market is because the company is making a earnings.
• If you purchase a stock when the company is not making a profit, you are not investing you are speculating.
• A stock (or stocks in simply) should never signify 100 % of your assets.
• In a few cases (such as a severe bear market), stocks are not a fine investment at all.
• A stock’s rate is dependent on the corporation, which in rotate is dependent on its atmosphere, which includes its client base, the general economy, its industry and the political climate.
• Your logic and common sense can be just as important in selecting a good stock as the suggestion of any investment specialist.
• Forever have well-reasoned reply to questions such as “Why are you spending in stocks?” and “Why are you spending in a particular stock?”
• If you have no plan about the prospects of a company’s business (and sometimes even if you believe you do), Forever use stop-loss orders.
• Even if your attitude is to buy and hold for the long term, continue to observe your stocks and consider selling them if they are not appreciated or if common economic conditions have changed.
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