8 Great Tips For New TradersIf you are a new investor, it is very normal to encounter losing trades. The best thing you need to do is stay calm and take a close look at all the issues involved. In today’s article, ASX Markets will give 8 best advice for new investors in this field.
Set your goal
It is necessary when investing that you have to define what you want to do. The ultimate goal is to make money, but each person’s needs for profit vary.You need to consider and give specific numbers for your investment strategy such as: how much capital you are spending, what are the expected short and long term returns and what you want to receive. What from this investment? Set clear goals and take small steps to reach your ultimate goal.
Evaluate your own financial situation
As with the advice above, ASX Markets once again recommends you pay attention to your finances under any circumstances. Before you start investing, it is natural to consider how much money you have to invest. At the same time, be realistic about this capital to ensure it does not make you “empty-handed” if it falls into the worst case.
Proactively invest, not depend on consulting
This is a problem that the majority of new investors entering the transaction have. Consultation of experts is necessary when evaluating portfolios. But remember that you only “consult” with the purpose of being more certain about your judgment on stocks. Do not spend money on investment immediately after consulting. Take the extra time to explore the opinions of the various experts and incorporate your own. That is a true analysis and helps you have a higher win rate.
Elsewhere, some experts may try to suggest you to buy different investments. And sometimes it’s just because they’ll get a higher commission if you pay for it. Do not decide to buy a stock if you are not sure about this investment or you are not sure.
Only investing in what you already know
Warren Buffett once warned investors that they should never invest in something they don’t know. Before investing in a company’s stock, he said, he first finds out how the company makes money and what the main factors influence its sector within 10 minutes. If in 10 minutes he still has no answer, he will switch to another company.
Variegation of investment portfolios
Stocks are a volatile market and things go up and down erratically. To make sure you can withstand sudden market volatility, make sure you have a diversified portfolio. This way, you will own a stock that is rising, even when others are falling in price.
Continuously researching and refreshing the portfolio
Because the market is constantly volatile, you also have to change to adapt to those fluctuations. Most importantly, you need to be constantly researching, up-to-date and willing to change your investments today as it most likely won’t be relevant tomorrow. The difference between a successful investor is that they know what they have and where they need to make a portfolio change to achieve future profits.
Don’t “surf” stocks
Warren Buffett once said that the key to making a big profit is buying a stock in the long term and holding it for decades. There are two principles: One is that if you buy a stock at a price lower than its real value, it will soon return to its true value. Second, if you buy stock in a great company, the value of the company accumulates and increases exponentially as you hold it in the long run.So patient investors are sure to get a big reward if they keep stocks in the portfolio for longer.
Learn from your mistakes.
Even as one of the most successful investors of all time, Warren Buffett still makes many mistakes. Of course there will be big mistakes. However, he always learned valuable lessons from his mistakes. Remember, where you make the mistake to remember them and never make it again.
Above there are the 8 favorite tips for new investors. Apply them in the trading process to make your investment process go smoothly. ASX Markets wishes you high efficiency trading with expected returns.
Above are the 8 favorite tips for new investors. Apply them in the trading process to make your investment process go smoothly. ASX Markets hopes you reach high efficiency trading with expected returns.