The Secret To Successful Investing Is To Never Stop Learning

The Secret To Successful Investing Is To Never Stop Learning

Be it a new or a seasoned investor, one thing each of them should realize is that there is never an end to learn about investing. The best investors keep gathering information and learning new things and different ways to evaluate the stocks. This lets them better their trade plan and in turn increases the trading success.

Always understand the volatility of the stocks

A very important thing that you should know when buying a stock for your portfolio is the stock’s volatility. You should know the volatility of the stock which can be done by comparing its beta. The beta of the stocks compares how volatile the stock is as compared to the index. If the beta of the stock is less than one then the stock will not move as much as the market, in either direction. If the beta value is more than 1 then the stock is volatile and will move a higher percentage than the market. Abeta of 1 means, that the stock is as volatile as the market.

Always avoid these mistakes in the stock market

Some mistakes are dangerous and they are a trap to wash away your capital. Know about these well in advance so that you do not fall prey to it.

  • Never invest in penny stocks. These are stocks that do not follow any levels and they are just a trap. Stay away from stocks that are not part of the index or that that are trading at a very low value
  • Never buy stocks because you have heard a rumor. Always do your own research and make an informed decision before you invest into a stock
  • Margin trading seems very attractive but in reality, it is just a way for your broker to make money. The margin is nothing but money that you have borrowed and a beginner in the market you should never be tempted by it. The broker would tell you that it will let you magnify your profits. The other side of the story is that it helps to magnify your losses as well.

In the stock market history repeats itself

It is true that the past performance of the market is not an indication of how it will perform in the future. However, there are many historical patterns and levels that keep repeating time and again. There are many stock patterns that technical analysts study on this trading software to understand how certain chart patterns indicate a particular move.

 

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