Let’s understand how you can make money in this asset class and achieve your goals.
#1: Timing the Market – A Big NO!
Time in the market is more important than timing the market. The simplest way to make money in equities is to buy low and sell high, However, nobody can predict when that will happen. So, the aim should be to spend more time in the market, rather than timing it. If you try timing the market, it could lead to making wrong calls and flawed decisions, thus eroding your wealth.
#2: Choose Fundamentally Strong Stocks:
Whether you are a new investor or a seasoned one, you must invest in stocks of companies that have robust fundamentals. The company must be a leading player in its domain with a strong balance sheet and corporate governance.
#3: Keep Your Expectations Realistic:
While equities do offer higher returns than fixed income instruments, in the long run, it’s vital to keep your expectations realistic. You can’t expect them to give you returns in high double digits (30 to 35%), even if you stay invested for the long haul.
For more stock market information follow FunTech Analysis.
Disclaimer : Above content purely for Educational purpose, Do your own research before taking any position.
Source : Books
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