10 TIPS FOR INVESTING IN A STOCK EXCHANGE

10 TIPS FOR INVESTING IN A STOCK EXCHANGE

In this article, we show you how to run a business effectively. To run a business successfully, you need to check your finances on a regular basis and make sure the money is spent well.

Why that ? When your business is new, or when you are a small structure – a self-employed craftsman, a self-employed building contractor or even a young trader – you do not necessarily have a comfortable “cash mattress” on which to rest. It is therefore even more important to ensure that your business continues to generate profits. Whatever the sector in which you operate, the advice that you will discover below is bound to concern you.

Investing in the stock market is confusing for the majority of you due to a lack of financial education which increases the level of risk aversion.

One of Warren Buffet’s best known quotes is, “Risk exists when you don’t know what you’re doing.”

His performance throughout his career proves it: he has become one of the richest men in the world. Volatility is normal in the stock markets, but risk is something you know where it can come from. Today to invest in the stock market, many tips will be given to you by an infinity of experts on the internet. But what interests do they serve? For you, we have redesigned step by step, the right path to prepare for action (no pun intended).

I) INFORMATION
To start with, we don’t make a record over a hundred meters without good preparation. The scholarship also requires preparation time. It is important to take an interest in the market, its evolution, the encouraging and alarming trends, the influencing strategic choices on the markets.

II) DETERMINATION OF THE PROFILE
First you need to make your own balance sheet, how much are you ready to invest? Are you a sprinter looking for quick wins? So small margins but which on very large sums can bring big … Or an endurance performer? Where less money can be invested but will remain longer in the capital of the companies in which you have invested.

III) WHAT WAY DO YOU WANT TO USE
There are indeed a large number of possible ways, you can manage your actions, this allows direct visibility on your portfolio but considerably increases the time invested in monitoring the stock market.

IV) BE PATIENT TO SUCCEED ON THE STOCK EXCHANGE Being obsessed with price fluctuations can destroy you psychologically and financially. If you are a long-term investor with a fundamental approach, focus on the intrinsic fundamentals of the business and creating added value. Remember that the stock market is an endless marathon.

V) UNDERSTAND THE CONCEPT OF A SPECULATIVE BUBBLE One of the keys to succeeding on the stock market is to understand how the speculative bubble works and to be well positioned when making investment decisions. It would be a mistake to keep your eyes on the evolution of the indices when you want to invest in stocks. To do this, focus on the graphical appearance of the action in question, taking into account the mood of the financial markets.

VI) BUYING SHARES IN PERIOD OF PESSIMISM I suggest you buy during times of panic, fear and despair. If the media and the press make the stock market the front page of the newspapers in red and black, it is an excellent buying indicator. When everything looks rosy on the financial markets, retail investors have the annoying tendency to go all out and think that tomorrow will be forever better.

VII) NEVER REGRET A PROFIT Better a small profit than a loss that you try to justify with biased arguments. The difference between an investor who wins and one who loses is very fine. This is due to the ability of the first to know how to hold a winning position and cut a losing position. VIII) DIVERSIFY YOUR POSITIONS Don’t fall in love with your actions! Example: “I like coca cola so I’m going to bet everything on coca-cola”. The golden rule to respect when investing in the stock market, whatever the sector chosen, is to diversify: “You don’t put all your eggs in one basket”

IX) INVEST IN A REASONED WAY Invest only what you can afford to lose entirely X) YOU CANNOT WIN AT ALL TIMES Accepting to lose, knowing how to cut, is saving your capital. And saving your capital is to avoid burning your stock account. And finally, have fun!

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