Investing in stock market should not be lightly, trusting anyone and buying any product. You have to get as much information as possible on the products you're looking to invest in, and feel comfortable entering an industry managed by the law of supply and demand where no output is guaranteed but where significant gains can be reaped from a mixture mix between: Objective – Dare – Study – Maneuver – Win
1. Set a goal and dare to jump in
On the stock markets, the goal is to increase your capital through stock transactions. Once you have a clear objective in mind, you must go for it! In other words, you must decide how much you're willing to invest and develop your own risk management strategy to figure out how you want to diversify your portfolio.
Learning and studying the stock market mechanism, in place since 1600. Do not forget to activate the "common sense" option in your brain! Knowing the basics of reading a balance sheet is important, as well as knowing how to analyze and calculate certain ratios, sort the opinions of analysts, know what share exactly is and how it works, cash flow, dividends, increase capital, and know how to buy, how to sell, knowing the costs of routing orders … No matter how much you already know, or there's always room for improvement!
Once you have acquired the basic knowledge, you must know how to select a good broker and learn how to deal with purchase orders, sales and timing. Always calculate your purchase prices on a "net" basis in advance and know the consequences of interpreting an event on a stock price (Fed meeting, unemployment figures, natural disaster, etc.). Finally, be familiar with the societal world, try to memorize the top 300 listed securities on the planet and invest in tools or financial newspapers.
To achieve a good return on the stock markets, you must set targets for gains (or "guards losses"). You have to create a selection of companies that you feel have the ability to achieve your goals. Obviously, if you're having trouble screening your stocks, remember that listed companies are legally bound to publicly file their quarterly results and forecasts. They must really communicate any changes that would be able to influence the future results or / and the stock price itself. Therefore, studying a company's past results will help you anticipate a rise or fall in the underlining stock.
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