Whether you make a profit from or you lose depends on the your stock market decision you make. The right decision is the only key to success in the stock market. The timing of investing in the stock market is very important . The constant fluctuations and high-low volume in the market are characteristic of the stock market. Your investment and, of course, profit-loss ratio depends on when you decide to enter the stock market and when you exit. Of course, according to investment rules, the higher the risk, the higher the returns. You have to decide at the right time when to invest and when to invest. Choosing best stock broker is one of the most important decision.
Often even new or even knowledgeable investors miscalculate and buy at the time of sale and sell at the time of purchase and incur large losses. In fact, the right time to invest is in the market downturn. Even so, owning one is still beyond the reach of the average person. It is also important to look for the right time to invest, not just invest. Because when someone is buying, it should be noted that someone is selling.
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Importance of Position Square-off
Even after buying a stock and the stock goes up as you expect, many investors still keep the stock as it goes up or buy the stock at a higher price as someone says or based on some tip. Also, if a stock you have started going down, you need to take immediate notice and check why it is going down.
Better a poor horse than no horse at all. But crazy hope does not allow such a decision to be made. Investors suffer because of not making such a decision or because of wrong decision or not making decision at the right time. And that is why there are so many misconceptions about stock market investing.
The Duration of the Investment
Most of the time the average or small investor decides to invest in a bullish stock market and then gets depressed after a loss by selling in a downturn. In fact, investing in the stock market is a long-term goal. Both timing and timing are important. Shortcuts and the desire to get rich quick can be devastating.
According to successful investor, a successful fund manager, many of his fund’s investors received extremely low returns or lost money. The main reason for this is the bullish entry and the bearish exit, only long-term investors can make a profit in the stock market or mutual funds.
If you want to avoid losses by making a boom and a sell-off, then investing every month lowers your average purchase price and the investor benefits in the long run. Of course, this requires proper planning and long-term investment.
4 Reason to Start Investing Early
- Often when you are planning, you realize that investing at a young age is necessary to make the next life easier and more self-reliant.
- The investment made at age of 20 is not only cheap but also very profitable. If someone is investing in PPF, National Pension Scheme or Mutual Fund Pension Plans, you may feel a little weird or skeptical but only time will tell how beneficial that person’s decision can be. Most people realize in the forties that they have 20 years left to retire. And then they start investing money in such schemes.
- However, a person who has started investing in five can fulfill the intention of retiring in forty. Long-term investments at an early age as well as term plans are always profitable.
- After forty, family responsibilities increase and after sixty, loneliness increases. In both cases there is a complete balance between what you get out of your investment and what you get out of your balance.
It doesn’t matter if any investment depends on the mindset of the investor. The investor’s age, education, family responsibilities, financial status and, of course, risk-taking, etc. Many things shape his mindset and force him to make an investment decision.
Planning & Proper Research
As mentioned above, any investment decision requires planning. It is expected to seriously consider its purpose, duration and expected return. Even if you don’t know anything about investing, since the investment is your own, hire a financial advisor only after thoroughly researching his / her career / history. It will always be beneficial to stay away from advisors who make you rich instantly. Of course, your hard work, your money and your decisions are yours, so time will tell.
Features of ‘Fixed Deposits’
- Traditional and easy investment options offered by banks.
- For this, the interest rate is higher than the savings account. Because banks can use this money for a longer period of time.
- Banks are required to pay the initial interest rate to the depositor for the full term. It is not affected by fluctuations in interest rates in the market. Over time, the rate is usually between 5% and 10%.
- The term of the deposit is also decided at the beginning. The term is at least seven days to 10 years.
- If the investor needs money before the term of the deposit, the bank collects a fixed penalty from the depositor. Suppose there is a term deposit of five years and the bank agrees to pay an interest rate of nine per cent. There is also a one per cent penalty for early withdrawals.
- This investment option is considered very safe. This amount is guaranteed by the Deposit Insurance Corporation (Deposit Insurance Credit Guarantee Corporation). But this guarantee is limited to only one lakh rupees per depositor and that too with principal and interest.
- Similar to term deposit, recurring deposit, flexi fixed deposit are also available.
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