Human life and activities are always associated with different consequences and events are an integral part of life. For this reason, everyone, based on their knowledge and experience, finds ways to deal with events and reduce the damage caused by them and applies them in life. In the case of the stock market we are looking for, capital market experts have recommendations for customers and believe that if people apply these recommendations, their activities will be more successful and have less negative consequences. Here are some of the recommendations:
1. Use your surplus capital
Usually, due to the various events that take place in their lives, people set aside a part of their income as necessary expenses so that they do not use it during the day. Since the stock market is one of the volatile markets, market experts recommend that it is better for people to avoid using their core and essential assets in this market. They believe that those who want to invest in this market should not only give priority to meeting the basic needs of their lives, but also refrain from using the part of their income that is intended for incidental expenses in the stock market. Capital market experts say it is better for people to put their extra savings into the stock market.
2. Do not pay attention to rumors
One of the problems people have is that sometimes they follow their own emotions or are influenced by the professions of others. Although this does not have much effect on many decisions, it can be detrimental to economic activity, especially in the stock market, for people who express their feelings. The fact of the matter is that investing in the stock market must be based on research and accurate information. Because in this market, several factors such as the state of the country’s economy, company performance, global events, etc. are effective in changing prices; As a result, you should never decide to invest in this market based solely on the advice of friends or advertisements or even the performance of relatives.
3. Do not invest for the short term
Investors should not worry about the daily fluctuations of the market, which is normal in the stock market, but should constantly pay attention to the long-term trend; Because listed companies are usually large companies, and naturally the work and projects they are doing will be large and very large. It is clear that the profit of large projects is not achieved in the short term and is achieved in the long run. As a result, investors need to look at long-term investing in order to receive a real return on their investment in the stock market.
4. Form a portfolio
The stock market has characteristics such as rising and falling prices and the risk of a sharp fall in prices. Because the price of some stocks normally rises and the prices of others fall over time, market experts recommend that buyers buy a basket of stocks rather than buying one. Avoid the type of share; This is because when a shareholder invests his capital in a variety of stocks, the possible fall in the price of some of these stocks is offset by a rise in the price of some of the other stocks in the portfolio, in which case the investor can easily take the risk. Eliminate possible price reductions.
5. Do not neglect your investment
The investor should not be indifferent to the situation after the formation of the portfolio, but should regularly examine it and assess its status in relation to the market situation to know whether his stock portfolio is in line with the market or needs To review and change or not. To do this, he can also consult with experts, consultants and stockbrokers and benefit from their guidance.
6. Invest indirectly
Those who want to invest in the stock market have two options: the first way is to buy the shares they want directly, which of course will follow the market fluctuations and the status of their shares? Or personally form a stock portfolio. Of course, experts do not consider the choice of direct investment to be appropriate for everyone. Because such work requires experience and expertise to examine the state of the market, the company, the country’s economy, etc., in addition, the investor must spend most of his time doing this, which is not cost-effective. Hence, they recommend the second way and that is indirect investment. In this method, the investor buys units of investment funds, which in addition to choosing a suitable stock portfolio benefits from the expertise, experience, facilities and other services of the funds.
Published and authored by FalconProfit.com