Never jump blindly into the stock market-IRA

July 4, 2019

Stock Market: Many a times it happens that while talking to your friends and colleagues, the discussion heads towards the stock market, and also how the stock market helps investors make big money. You might never have invested in the market, but after hearing about all those things you also decide to buy some stocks. However, if you entered the market just to remain in the mainstream fashion, you have landed in for the wrong reason. You should invest in the stock market after getting the basic knowledge about it and in accordance with your financial goals.

Stock market is not a money-making machine

You must have heard the story about many investors who made their fortune through the market. Many believe that the stock market is like a money-making machine, which can turn them into millionaires over a period of time. Well, it is true that a lot of investors have made profits through the stock market. But it was only possible because they’ve good market knowledge, made some really smart choices by adopting carefully thought of strategies, and are also much disciplined in their approach. Many people forget that a lot of people have lost their entire wealth, while some have been forced to sell their personal assets to cover the loss in the market.

Educate yourself, handle basics first

Before making your first investment, take the time to learn the basics about the stock market and the individual securities composing the market. There is an old adage: It is not a stock market, but a market of stocks. Your focus will be upon individual securities which you are investing in and the relationship with the broader economy and the factors that drive your stock. Some important areas which you should be familiar with before entering the market are:

# Understanding financial metrics and definitions such as PE, EPS, ROE, Market Cap and so on

# Popular Methods of Stock Selection and Timing, such as fundamental and technical analyses

# Trading basics, rules, compliance and terminology as market order types including market orders, limit order, stop market orders, stop limit orders, trailing stop loss orders, and other types commonly used by investors, margin money required if you want to trade in F&O.

# Gain some understanding about the market and its relationship with the economy such as market relationship with inflation, GDP, fiscal deficit, crude prices, rupees values against dollar. People lose money in the markets because they simple jump to the market without understanding the economic and investment market cycles.

Invest only your surplus funds

The biggest mistake newbie investors make is to invest money that they can’t actually afford to lose. Investing in the stock market is risky, and that means that you can potentially lose everything. Like any investment, there are inherent risks associated with the stock market. Some are the risks related to the overall market as systematic risk that you can’t avoid by diversifying your portfolio, while some risks are stock-specific that you can avoid. You need to decide your own risk tolerance considering your age, financial strength, retirement goal, etc, and accordingly should take the risk. If you want to take risk in the stock market, then only invest your surplus funds which you can afford to lose. Investment is done to generate more money, but do not invest all your emergency funds in the stock market.

Avoid Leverage

Leverage simply means use of borrowed money to execute your stock market strategy. In a margin account, banks and brokerage firms can lend you money to buy stocks. It sounds great when the stock market is moving up, but consider the other side when the stock market or your stock goes down. In that case your loss would not only erode your initial investment, but you will also have to pay interest to the broker. Leverage is, thus, a tool, neither good nor bad. However, it is best used after you gain experience and confidence about your decision-making abilities. Therefore limit your risk when you are starting out to ensure you can profit over the long term.

Avoid herd mentality

Unlike many investors do, you should avoid the herd mentality that is influenced by the actions of your acquaintances, neighbors or relatives without evaluating the current information and underlying stocks. Thus, if everybody around is investing in a particular stock, the tendency for potential investors is to do the same. But this strategy is bound to backfire in the long run if you have not chosen the stock by careful analysis. So, if you really don’t understand about the stock, never step in. Before investing in a company, you should know about its business. It’s important to only invest in businesses that are easy for you to understand, especially while you’re just starting out. Never invest in a stock. Invest in a business instead.

Diversify, but refrain from over diversification

Never put all your money in one stock. Create a well-diversified portfolio of stocks that can help you reduce the risk and save you from losing money if a few stock do not perform well. Also, avoid over diversification, as increase in the number of stocks up to a certain limit do help in diversifying the risk proportionately, but beyond a certain number of stocks your investment can’t get the proper growth moment.

Don’t try to time the market, follow a disciplined investment approach

A majority of investors try to time the market, something that financial planners have always been warning them to avoid, and thus lose their hard-earned money in the process. No one is able to successfully and consistently time the market by catching the tops and bottoms over multiple business or stock market cycles. You can invest over a period small amounts of money to average the market and can get the benefit in the long term. Investors who put in money in right shares systematically over the long term generate outstanding returns. Hence, it is prudent to have patience and follow a disciplined investment approach besides keeping a long-term broad picture in mind.

Don’t let emotions impact your investment

Separate your emotion from any particular stock as many investors end losing money in the stock markets due to their inability to control emotions. Get rid of the fear and greed cycle. Do not invest in any speculative unknown stock lured by its past fabulous return without understanding the risk involved that will lead you to suffer loss. In a bear market, control your fear and don’t panic and sell shares at rock-bottom prices. Thus, fear and greed are the worst emotions to feel when investing, and it is better not to be guided by them.

Have realistic expectations

Hoping for the ‘best’ from your investments is not wrong, but you could be heading for trouble if your financial goals are based on unrealistic assumptions. For instance, lots of stocks have generated more than 100 per cent returns during the great bull run of recent years. However, it doesn’t mean that you should always expect the same kind of return from the stock markets. If you feel that stocks in your portfolio are overvalued, it is better to switch to a relatively low value good stock.

Lastly it’s important to monitor your investment and review it periodically as any important event happening in any part of the world does have an impact on our financial markets. Also, any news or financial event related to a particular stock or industry impacts that stock.

NOW YOUR DREAMS WILL COME TRUE.

Start investing today with us. Now we will guide you to the success. we always keep transparency in our services and make realistic commitments to our clients.

Heart Touching Real Story On Investment, Must Read!

July 1, 2019

In this article I tell you about Investment, why it’s important for you and where you suppose to invest. Perfect.. Now I do Investment with you (AdVix) Perfect.. Now I do Investment with you (AdVix)

Yes.. Now I understand the importance of Investment…

Welcome Readers,

Inspiration behind this article is my friend, who asks me, how I should save my money. He told me that, he earns good amount of money but that good amount of money not reflected in my account, just because of unusual expenses. May be most of us, faced the same problem, but don’t get panic, this topic will help you lot.

My Story-

“Earning money is best part of life, people gives you respect and money gives you lifestyle.”

When I have started my career that time I got very low pay scale, which helps me to pay my paying guest rent and 2 times food only, but after 6 month due to my hard work I got raise of 2000 rs per month  , I feel good and bad for this raise, leave it. But as my expense are same, so here, I save monthly 1000 rs,  but I realize that, I have spent 1000 rs more in my monthly expenses. After that I struggle lot, to search for handsome package job, which I have got in next 6 month, feeling good in this case. Here I got good salary, so I have decided to change my paying guest and rent a 2 bhk flat with my friends on share basis. We eat food in good restaurants, outing outside on weekends and spend money in other activities also. As the time passed, and after 1 year when I look into my bank account then as per my package, I am not happy with the savings which I have seen in my bank account. Here one most dangerous question arise in my mind, how should I save money?

Next Action Point (How to save money)

The same question ticking in my mind, what is wrong with my saving and how could I increase money balance in my bank account. I look people around me; I found that, they are focused towards money. They daily eat morning and evening breakfast, but they order economic healthy food. Sometimes they bring evening breakfast from their home. Me and my friend party harder but they do party in weekends only. They plan their outing once or twice in a month, not like us who plan outing every weekend. So, after that I realize that they spent money on few occasions and this way they cut some unusual expenses. I also decided to take forward these small steps to increase my money balance in my bank account. Yes, I got some benefit from this step.

But, this is right step to save money, the next question arise in my mind. Now, new mission to find out answer of this question.

Here I know, what is meaning of Investment?

“Making money from money is an art and the artist who helps in making investment, we called them as an ‘Investment adviser/advisor’.’”

We lived in internet age, where all information is available on your finger tips. You just search keywords and lots of results are appearing on your screen.  When I search topic ‘how should I increment my wealth’, then in most of site I got one name common, which is “Investment Adviser/Advisor”. After that I search for roles of investment advisor and luckily I got one number of advisors of my city and called him up. The investment adviser helps you to identify your investment tool as per your future goals. Like, you have to purchase a car in next few months, or you have required 3 lacs for your marriage in next 1 or 2 years. So he/she ask such question for your future need. He/she identify your different future goals, identify your risk taking capacity, also identify the time period do you invest and to club all these pointers, advisor suggest you best instruments for investment. You need to invest every month/quarterly as per your convenience. Here in most of investment instruments important role played by compounding. Means you get benefit on your invested amount plus the interest you earn on your investment. So, the selection of right mutual funds, FMP, FD’s gives you significant result on your investment. You earn good profit and earn money from money.

What are the best investment instruments?

“Risk capacity and Earning Money are correlate with each other, end result in making profit and loss”

In the market there are lots of investment instruments are available, each instrument have unique features, here instruments means Fixed Deposits, Mutual Funds, Real Estate, Fixed Maturity Plans (FMP) etc,. Some instrument invests your money in secure way, means in government bonds which have low risk and good profit. Some instrument invests your money in the high and medium risk securities but the profit in these securities higher as compared to secure securities. As these are high risk securities so age group of investor are from young age people who can take this type high risk. So investment advisor helps you in choose best instrument and accordingly suggest you to invest in these securities. Advisor timely check your portfolio and suggest you for exit if there is loss from investment.

Keep Investing…

To earn good money from your investment, you need to get discipline with your investment plan. Regular review of your investment is key factor, so you can reshuffle or make changes in the investment strategies.

Investment is key for making money for great future and bright future of you and your family also you will get retired rich.

 

Access Your Financial Dreams With “Investment Research”

June 27, 2019

(Beware of fraudulent advisories)

Investment Research: Are stocks the easiest way to build wealth?
Here are six reasons why, if you’ve not invested in stocks yet, you will definitely want to start this year:

• Opportunity to own an existing business: When you buy a stock, you get to buy a stake in an already existing business with the huge advantage that business already has all its employees and infrastructure in place, and is already up and running. You straightaway get a claim on the businesses future profits (in your proportion of ownership) without any of the headache or effort involved in running it.

Liquidity: Buying stocks, you instantly rid yourself of all the above problems. You can instantly buy and sell your stake in the business with a single phone call or a few clicks of your mouse.

• An astounding number of choices: You can buy only if you really like something. It would be a truism to say that you will try to find the most profitable business being sold at the cheapest price. But the point is that the stock market puts you in a position where it enables you to make such a choice.

• Little money required: Think about this. Even if you plan to start a small grocery store in your neighborhood, you will have to stake a substantial amount of money on the success of just one venture that may or may not take off as planned. Compare this to buying a stake in a business in the stock market. You can get a piece of the action with even just a few hundred rupees, let alone lakhs and crores.

• No hassles of negotiations and brokerage: With stocks, the price is right there for you to see. No hassles of negotiating with the opposite party. The brokerage is usually pretty low too (usually a maximum of 0.5%). This helps ensure that a substantial part of your investment is not eaten up by frictional costs.

The prospect of a higher return: One thing at the very core of choosing to run a business instead of investing your money in a bank fixed deposits the expectation of higher returns on your investment. Thus, businesses usually strive to earn returns much higher than your run-of-the- mill investments. The trick is to buy a stock that has shown that it can accomplish the above with reasonable certainty, and to buy it at a good price.

Investment Research-

If you are thinking of investments that could beat inflation and also give you good returns, one option might be to start investing in the stock market. If you have decided to do the same and go for it all by yourself, it’s not a bad idea. The stock market, when properly understood, can help you make a lot of money, but you can also lose all your money if you are tempted to invest randomly without knowing the nitty-gritty of the market.
Therefore, there are a few things you must know before you dive into the share market. Just read our next Article from Investment Research.