These tough times have made it even more important to have an additional source of income, especially the kind which does not require you to step out of the home every day and struggle for money. When everyone out is looking for that hidden source of money, we are going to reveal one for you.
It is not even a secret. It has existed and been there for years, but we will share some key points to make a fortune in the same. The market we are talking about here is the lucrative stock trading space which has huge potential and can turn your life upside down if you use it rightly.
It is a perfect combination of luck and smart work and is probably one of the most powerful tools of having an incredibly lucrative source of extra income. But the key here is to follow the right path and be smart to survive and flourish in the market.
We are going to share top 7 tips which have the potential to make you a pro-stock market trader. So, let us start:
Okay, so to begin with you need to have a clear and concise plan in your head about how you want to go about life and where you see yourself in future. Well, that means you must design an investment strategy based on your future needs and the time when you will be needing those funds.
By creating and deciding in advance how much money you need at a certain point of time you will be able to decide your investment amount. Based on that you can take the call about how much capital you are willing to invest and what results you expect. So, this will let you foresee and decide your expected amount of ROI which will set the course of rest of your trade.
Diversify Your Portfolio
It is no market of definite nature and fixed returns. Its high volatility expects you to stay on your feet, be wise and careful before making even a single investment. This means all your eggs cannot go in a single basket. One must practice careful consideration before investing.
So, the key here is diversification. Firstly, it gives you enough time and space to act if any market perils hit you unexpectedly. So, this way you will be able to save at least some of your funds if you had invested in different ways.
If you are thinking long-term you cannot risk all your money by acting impulsive. So, try to diversify your portfolio as much as possible. Invest in:
● Different industries i.e Tech, Fashion, Energy
● Different companies i.e Teva Pharmaceutical Industries and Nice Systems Ltd.
● Different countries, i.e BuyShares NZ, USA and Asia
● Different types of stocks i.e
This provides you a strong shield against uncertain happenings. Because at the end of the day you will have performed well in certain areas which will balance the bad performance of the rest.
Go for automated trading systems
The market is well-suited for beginners like you so do not worry you need not to be an expert to be able to perform well. Instead you can take advantage of various automated trading platforms that have integrated bots who will conduct the trade on your behalf.
Several similar platforms will let you invest using the excellent expertise of the robot-advisors that are super-accurate and efficient. The services offered by them are user-friendly and expand from low to high capital value which makes it feasible for anyone to use.
So, during your initial phase of the trading, these auto-bots are the suitable option for you.
Be patient and persistent
If you are into this segment, you must keep a check on your trading activity and any urge to constantly be involved in the same should be resisted. For instance, if you are checking the performance report of your share once every quarter, you are doing more than enough.
Taking it further from there could be detrimental. Because anyway you cannot keep a constant check on the same and if this over-activity persists you may even lose more than you gain. So, it is better to think long-term and instead of going by the share value you should think of the company repo more.
Explore other Investment Alternatives too
Diversification does not only mean that you should be exploring different segments of the stock market alone. There is a lot more to explore and you should not underestimate or overestimate any space when it comes to investing your hard-earned money.
So, while you are focuses on share market trading, you should still look out for other options too like:
● Metals like gold and silver
● Cryptocurrency market
● Real Estate
● Startup investing and IPOs.
Believe you me, these spaces hold real good potential and you should not overlook them. The best part is by investing in multiple such spaces you will know at the end of the day you will be taking some profit home.
Keep your impulses at a bay
This market has no space for emotional outburst and impulsive decisions as one bad call can ruin your whole investment portfolio. Though believing your gut every once in a while is healthy, in the long run you have to keep your impulses in check.
Do not get too excited or too low by any minor market movement, always keep your head high and think of how much you can afford to lose while you invest. Just try to be as practical as possible and do not get drawn away by emotions.
Keep your trading costs low
Whatever way you chose to invest just keep the fees in your mind. The dent will not be too heavy if you count it per investment basis, but the annual money you will lose to the fees will account for a big damage.
So, choose you investment option as carefully as possible and try to keep it low. From flat fee to percentage of growth consider all the factors before you decide to go for one.
Keep these investment tips in mind during your initial trading years and you will become a pro over time. Just follow them to keep you at a safer side while in the long run you would be learning a lot from your own experience.