AVOIDING MAJOR LOSSES IN EQUITY INVESTING

It is quite easy to fall prey to market fluctuations
and make unprecedented losses in investment.
Wealth building is important for everybody; it is
not enough if we have sufficient money today,
the future counts as well. Investing in the equity
market is perhaps one of the most lucrative ways
of going about this. It is a fact that there are
several avenues of making money, but investing
in equity is considered best among them.
Following some simple tips will help you steer
clear of losses and maximize your gains over the
long run.
Never rush into an investment. Always make
informed decisions. If you are looking at short
term investments (where you want to retrieve
your money in less than a year) then choose debt
products (such as debt mutual funds). In this
case, the risk is less but so are the returns.
If you want higher returns, then choose a long
term investment such as the stock market.
Beware of fraudulent companies. Not all the
"upcoming" companies you come across are
genuine.
Buying high and selling low are the most
commonly made mistakes. Do not Panic; in fact
you just need to do the opposite.
Do not believe superstitions or word of mouth
when it comes to investing.
One fundamental rule to remember: never
borrow money or take a loan to invest. The
surplus you have left after all your expenditures
is what you should use for investing instead of
splurging it unnecessarily.
Stock market is not a game of gambling- it is very
much an investment to fulfill your financial goals
Avoid day trading, use your common sense and
don't get too greedy.
It is always advisable to seek professional help,
provided they are reliable.
Go in for a systematic investment plan [SIP] -
which helps you save regularly and with
discipline.
You can definitely control your investments, but
you can't control their performance. Once you
understand that, you are well on your way to
wealth generation. It isn't just about increasing
the value of your finances, it is also about
improving your credit score and credit records so
as to be able to avail loans easily and secure your
financial future.
No amount of speculation can help you get more
gains, it is only a tentative calculation you will
have to go by. But, the advantage is that the
more patient you are and the longer you invest -
you will be rewarded well and be able to achieve
all your financial goals.
Get to know more on how to raise your credit
score so that you can avail the best suited loans.