Investor guide: These simple tips will help a first time investor make better decisions in the stock market

The numbers on the screens of the brokers seem confusing. But don't worry! If you have planned to invest in the stock market, here are a few tips that you must remember before pouring in your hard earned money.

Make small investments

Don’t go for the bull’s eye in the beginning. It is always better to invest smaller quantum of money in the stock market in order to keep the offsets minimal. Make tiny investments and learn the tricks of the trade rather than investing a huge amount and risk losing it all.

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Invest the excesses

It’s wise to invest your additional wealth in the stock market rather than disrupting your budgets. If the stocks don’t do well, at least you won’t be in a complete loss.

Take second opinions

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Don’t rely on only one broker for your stock market investments. Talk to other brokers and existing investors to better understand your options. Do you research well and then invest.

Diversify the portfolio

Its always wise to invest in different kind of stocks as it provides a cushion to any kind of losses. For instance, if you have bought stocks of both infrastructure and FMCG companies and one of them is not doing well, you at least have the other to bank on.

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Invest for long term

Stock markets are unpredictable and hence you cannot preplan. Always invest for the long run as every stock generally follows a pattern.