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Top 5 Dos and Don'ts of Stock Market Investment

16 June, 2021

Stock Market Investment

“Double your money in 7 days.”

Investing in the stock market can be quite a roller coaster ride if you start believing in ads like this or those widely-spread misconceptions about the stock market. When it comes to trading, you have to follow a lot of Dos and Don'ts if you want to earn high profits. This blog will talk about a few things that you must do and a few that you must not while investing in the stock market.

The Dos

1. Educate yourself before you start investing. There are a lot of learning resources available on the internet; be it videos or blogs. Make sure you understand the basic concepts before you make your first investment.

2. Start your investment journey as early as possible. This will increase your chances of accumulating greater wealth.

3. Start small if you are a newbie. If you invest a lot of money in the beginning without even knowing the technicalities, you might end up losing money. So, start with a small amount and then increase as and when you gain some experience and confidence.

4. Diversify your investments in multiple assets. Invest in stocks, mutual funds, derivatives, fixed deposits, gold, and many more so that if you end up losing money in one place, you will not lose all your money.

5. Consider the trading costs. Apart from the brokerage costs, there are other charges too including exchange charges, demat AMC, and more.

Here are a few more tips to invest in the stock market. Do take a look before you commence your investment journey.

The Don'ts

1. Do not make decisions only based on social media influencers or advice given by friends or family. Do your own research and consult Online Discount Brokers if the need arises.

2. Do not expect high returns in the short-term. Stock market is a game of patience and the one who is calm and composed ends up earning high profits in the long run.

3. Do not borrow money from anyone just because you want to start investing in the stock market. You can start investing with your surplus amount.

4. Do not consider investing as gambling. Stock market investment is not for you to make an addiction. It is for you to have patience, invest for the long-term and build wealth gradually.

5. Do not panic under any circumstances. Stock market is volatile and it keeps fluctuating. However, you must stay calm and make meaningful decisions.

Apart from the above mentioned points, there are a few more mistakes that you must avoid while investing in the stock market. Now that you are aware of some of the most important things to do and things to not do in stock market investment, get ready for your first investment. However, before investing, make sure you choose the right stock broker. Here are some of the few things you must consider before choosing your stock broker. Happy investing!

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