Here are my #7 tips for anyone starting out in the world of investing.
- Stay away from intraday trading. It is gambling and you will lose all your money. Not a single person became rich by day trading.
- Never invest borrowed money. Only invest that extra money left after spending on your daily basic needs. So that even if you loose the money then it will not effect your normal life.
- Don’t put all your eggs in one basket. Diversify your portfolio by investing in different sector stocks.
- Buy when everyone is selling. The best time for investing in a fundamentally strong stock is in bear market. Follow strategy of buy on every dip. Invest small small amount on every 5-10% fall.
- Don’t check price of stock daily. Because that will create panic situation. If the stock in fundamentally strong then no need to worry.
- Don’t invest blindly in the stocks recommended by others. Do your own research and invest only when you are satisfied.
- Keep patience, understand the power of compounding. Warren Buffett made more than 95% of his money after the age of 50 (see below image).
Congratulation!! Because you have decided to invest at very young age.
Happy Investing!! :)