So you’ve made up your mind to invest in the stock market. For investment-innocents, here’s a shocker: It is not where you invest your money, but how you invest it that decides the profits. That is to say, stocks are only as good as the investor; they respond to the individual’s abilities and acumen. In that sense, stocks are quite distinct from consumer durables. You can reasonably expect a washing machine to perform as well for you as for your neighbour, but that is not the case for stocks, which are a different breed altogether.
So, instead of investment tips, here are some attitude tips.
1.Don’t commit large amounts of money or short-term money.
2.Do be sceptical of self-proclaimed experts.
3.Don’t trade for short-term.
4.Invest long-term in fundamentally strong companies.
5.Don’t ignore stock fundamentals.
6.Do be critical of media reports
7.Don’t follow other investors blindly.
8.Do stay away from a large number of stocks.