Risky Advise For Beginner Investors…

stock market, share market, investing, market strategy, ipo,upcoming ipo,

There are some important tips when entering in stock investment

New investors are getting advice from everywhere. They are getting pieces of advice from financial television, magazines, financial professionals, websites, friends and family members. Beginning investors are much more likely faith in tips then experience. While the Advice means to help, but it may actually be destructive advice to the new investors.

1. Buy stocks of companies whose products you love
How many times you have heard? Before investing in the stock market that you should buy companies that products you love. This can be a risky expensive and risky proposition.

For example, Let’s say you want to buy a share of the Axis bank because you are using axis bank services and people also get good service from the Axis bank like best interest rate on savings accounts, mutual fund investments, loan on jewellery at the lowest rate. 

The problems with this strategy are that it fails to take price into an examination. Axis bank may be a great stock to buy at Rs. 650, but it could be a pricy investment at Rs. 740. New investors pay extra for those companies that they really want to get ownership. This buy-at-any-cost philosophy can regret the purchase of your shares at the end of the day.

2. “Stock portfolio diversification”

Diversification is considered to help your portfolio to keep control of market drops and risks. It’s a great concept, but achieving proper diversification can be difficult and expensive. 
New investors have difficulty to create a properly diversified portfolio. If you are not using the index fund for diversifying, then you need thousands of rupees to build a properly balanced portfolio in the stock and you may need to purchase at least 15 individual shares. Over-diversification of share can be risky to new investors so they can get the loss.

3. Buy Penny Stocks

You may get a recommendation by emails, advertisements, friends and even family member that you should buy penny stocks. The attraction of Penny Stocks investment is that it looks like a simple way to quickly get rich because the penny shares are subject to high volatility. 
If ABC company shares are selling for Rs 5 per share, you can buy 1000 shares for Rs 5,000. The hope is that the shares go up to Rs 10 or more so that you can double your money quickly. They usually have large debt burdens and whose long-term efficiency is usually suspicious. Most penny stocks are more likely to go zero than double your money

Leave a Reply

Your email address will not be published. Required fields are marked *