1 / 12

Important Things to Know When Investing in the Stock Market

A stock market is a public exchange on which securities, also called shares of stock, are traded. The most common example is the New York Stock Exchange (NYSE), where the stocks of publicly held companies are traded.

Desertcart7
Download Presentation

Important Things to Know When Investing in the Stock Market

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Important Things to Know When Investing in the Stock Market www.desertcart.sg

  2. What is the Stock Market? A stock market is a public exchange on which securities, also called shares of stock, are traded. The most common example is the New York Stock Exchange (NYSE), where the stocks of publicly held companies are traded. www.desertcart.sg

  3. What is the Stock Market? An individual stock represents a small portion of company ownership. A company may have millions or billions of shares outstanding among which only a few can be bought or sold at any given time. www.desertcart.sg

  4. What is the Stock Market? The stock markets are the backbone of the capital market. The stock markets allow companies to issue and sell shares to raise capital. Established, regulated, and monitored by the regulator, trading in stocks gives investors the confidence that their investments will be conducted anonymously and securely. www.desertcart.sg

  5. What is the Stock Market? The following details will highlight some essential things to know before investing in stocks. It will also give you an idea about what factors to consider when buying stock. www.desertcart.sg

  6. Important Things to Know While Investing in the Stock Market 01 One of the biggest mistakes new investors make is when they invest hard-earned money that they cannot actually afford to lose. Investing in the stock market is risky, and that means that you can potentially lose everything; not just part of your portfolio, but all of it. That’s why it’s important to understand your tolerance for risk and build a diversified portfolio that matches your goals, objectives, and risk tolerance. If you want to take a risk in the stock market, then it is wise to invest only your surplus funds. www.desertcart.sg

  7. Important Things to Know While Investing in the Stock Market 02 Leverage is simply the use of borrowed money to execute your stock market strategy. Banks and brokerage firms can lend you money to buy stocks if you have a margin account. It is a great idea when the stock market is moving up, but when the stock market or your stock goes down, then it can lead to a big loss. In that case, your loss would not only erode your initial investment, but you still need to pay interest to the broker. www.desertcart.sg

  8. Important Things to Know While Investing in the Stock Market 03 Greed and fear are the two emotions that color investors’ decisions in their stock market investments; this is the reason why many lose money. It is always better to stay cool and rational when investing in the stock markets rather than being carried away by emotions that can lead to wrong decisions. www.desertcart.sg

  9. Important Things to Know While Investing in the Stock Market 04 Diversify your investments by investing in a mix of stocks and bonds. Create a portfolio that is well-balanced and has some exposure to different asset classes. Stocks and other securities are only a part of the investment process. Always remember to include other asset classes like mutual funds and cash equivalents. Also, refrain from over-diversification, as an increase in the number of stocks up to a certain limit does help in diversifying the risk proportionately, but beyond that, no major benefit emerges as compared to other strategies. If you wonder about how to pick stocks for the long term, then do proper research about the company and study its performance and track record. Also, choose companies that will grow fast and deliver good returns in the future. www.desertcart.sg

  10. Important Things to Know While Investing in the Stock Market 05 Most investors try to time the market. They do this by looking for the best time to get into the market, then trying to time the exits, either out of panic or excitement at hitting a home run. The problem with this approach is that no one can consistently catch tops or bottoms in multiple business or stock market cycles. Investing over a period of small amounts of money so that it can average out helps you generate outstanding returns over the long term. www.desertcart.sg

  11. Important Things to Know While Investing in the Stock Market 06 Do proper research about all factors regarding investing in stocks and if you are new to the stock market then read relevant books regarding investing in stocks for beginners. Just use your mobile or laptop to search on google regarding all the specific information you want. It will give you a better idea when you make decisions. You need to have a proper idea about how the stock market works to make the right investment decisions at the right time. Also, monitor your investments regularly and stay updated regarding any news related to the companies whose stock you hold. www.desertcart.sg

  12. Thank You!!! You can find us at twitter @desertcartmena & support@desertcart.com www.desertcart.sg

More Related