The stock market is often seen as a means to make easy money. But the truth is that investing in stocks requires patience, discipline and a methodical approach to investing. It also requires patience, and a long-term investment horizon.
It’s easy for investors to be enticed by promises of a quick return and a quick fix However, investing in stocks can be an extended process that has many variations and a few downs. Long-term investments can yield substantial rewards. Here are some share market tips that beginners should know before they start.
Don’t be a Jack of All Trades
New investors frequently make the mistake of jumping from one strategy to another. This can be costly, especially for those who are just beginning out. Some novices, for instance try to be “jacks of all trades” and switch from buying and trading short-term investments (options or futures) into investing in US stocks. But this approach can be risky and expensive due to the high amount of charges for transactions exchange rates, as well as costs for conversion of currency.
Instead, stick to a single investment strategy and focus on the long-term potential of the stock of a company. Avoid overreaction and focusing on short-term events. Keep track of your stocks each quarter or when you receive quarterly reports. Don’t be distracted by the hunt for the next big thing.