ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Personal Finance»
  • Understanding Finance

Common-sense tips for share trading

Updated on June 20, 2011

Share marketis an alluring world where people invest for getting great returns. But are all the investors getting good returns? The answer is a big No. At the same time, not all the people lose in share market. So, what is the secret these successful people adopt for not losing their money? If you follow these simple common-sense tips, you may never lose money in the share market.

1. When people around you come to know that you are investing in share market, you will be flooded with all sorts of tips about "hot stocks" But before you decide to invest in these so-called hot stocks, you have to consider the source. May be, some of the advisers give such tips to promote particular stocks. If they can allure more number of investors like you, demand for the particular stock may go up and they can make good profits. Hence, you should weigh the source from which you get such hot tips.

2. Make a thorough research about the companies, the shares of which you intend to buy. You have to use your judgment and should not rely on the advice of others. Judgment and opinion of others may be biased. There may be many newspapers which give you misleading information based on false stories. These suggestions must be taken with a pinch of salt. In a nutshell, you should rely on your judgment and your judgment alone.

3.The most important thing is you should invest only that much money which you can afford to lose. Though there are occasions on which people have reaped huge returns in a single stroke, such occasions are very very rare. You have to bear this in mind. Loss within manageable and affordable limits will not pinch your pocket much. You should be in a position to trade daily, which means, you should not invest high amounts in a singlestock. Things may go wrong.

These are only safety tips. Even if you follow these tips, there are chances that you may incur loss because of situations beyond your control such as political events, Government policies, international trends and so on. But, by and large, these tips will help you in keeping your investments safe and secure. But you should also make it a point to keep on learning the intricacies of share trading which is quite exciting and rewarding. Every experience of yours is a learning experience. Hence you should keep an open mind and be receptive to more and more enriching ideas.

This related article is a good read.

Share-trading may fetch you good returns


    0 of 8192 characters used
    Post Comment

    • profile image

      John Wood 8 years ago

      Mindset is a key feature of successful traders and you have identified a very important set of issues.

      Education and a good understanding of the market place and the companies you wish to trade is essential.

      Good article thanks