In a short-term the stock exchange is a human drama whose development is governed less by the quoted companies’ actual profit development and more of our constant dreams and our greed and fear.
We all know that exchange bubbles exist and we can’t do something about it. Growth rates make a “domino effect”; prospective buyers see others getting rich and entice to follow. And the more whose attract, the stronger becomes the effect. We can’t see our friends being rich. Our conscious will fall apart which isn’t good. For the smart investor, who buys when it’s cheap and sells when it’s expensive, makes these bubbles an excellent time to sell. Even crashes means “companies on sale”. So stay cool and keep a level head.
So here are three basics rules to keep in mind.
* Make a goal with your investments. Which profit you expect, if you can try to take higher risks to make e better profit, or prefer a lower risk? Decide a reasonable amount as you can use for your stock investment. Never borrow or rent money for stock investments.
* Be long-termed. Don’t expect unreasonably results in a few months. You should have time scale for about 3-5 years, preferably much longer. Spare your investment over the time, don’t buy all at once. Please see your investment as something you be active with all your life. Remember, in a long-term saving it’s nothing who beat stock investments.
* Spare your risks. Search for good companies with low value and then invest I minimum 8-10 different stocks, preferably more and also in different industries, decreases the total risk in your portfolio. To invest in their company who constitute index decrease the risk although further. At last, to invest in stocks is exciting, informative and profitable. You will learn about companies, economic and how the community works. All big changes worldwide refer to stock market, frequently in big drama. And if you ever run into temporary setbacks and falls, it’s worth remembering the following: in long-term savings, the stock market is always increasing.
http://stocktradingsoftwareguide.com
