Some very fundamental rules that I have not be able to keep with:
1. Diversify and invest Thinly across
Diversify your stock portfolio over a basket of 30 over different counters across at least 5 different sectors.
Warren Buffet said Diversification is only for those people who does not know what they are doing.
Let's fact it. You are not an expert. Risking too much on any stock investment is a recipe for disaster, even for the sophisticated stock market investor. Keeping your individual share investments small keeps your capital pot safe and lowers the stress that can make investing unpleasant. Once you have 30 stocks you can grow the scale of each investment, but until that day stay small.
2. Take your time and do your research
Never invest your money on a share tip.
Stock investing is a skill you build up over time and with improvement your returns will grow. Share tips are empty investments and many unsavoury types try and lure you into investments with bad advice in the same way a salesman tries to sell you shoddy products with lurid advertising.
Just say ‘No!’ to share tips.
3. Take a longer Time Frame (3 -10 years)
Jumping in and out will only make your broker rich
Stay away from noise and short term fluctuations. Focus on macro economy and company financials. Picking only good companies to invest in. Do not forget dividends.
1. Diversify and invest Thinly across
Diversify your stock portfolio over a basket of 30 over different counters across at least 5 different sectors.
Warren Buffet said Diversification is only for those people who does not know what they are doing.
Let's fact it. You are not an expert. Risking too much on any stock investment is a recipe for disaster, even for the sophisticated stock market investor. Keeping your individual share investments small keeps your capital pot safe and lowers the stress that can make investing unpleasant. Once you have 30 stocks you can grow the scale of each investment, but until that day stay small.
2. Take your time and do your research
Never invest your money on a share tip.
Stock investing is a skill you build up over time and with improvement your returns will grow. Share tips are empty investments and many unsavoury types try and lure you into investments with bad advice in the same way a salesman tries to sell you shoddy products with lurid advertising.
Just say ‘No!’ to share tips.
3. Take a longer Time Frame (3 -10 years)
Jumping in and out will only make your broker rich
Stay away from noise and short term fluctuations. Focus on macro economy and company financials. Picking only good companies to invest in. Do not forget dividends.
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