Stock market has been a source of creating wealth for a very long time, it should not be the only method to multiply your money.
Every person should have a diversified investment portfolio for wealth protection. The number one rule in money management should be “ Do not lose money”.
Not everyone makes money in the stock market, stock market benefits those who are knowledgeable and patient. Most people who play speculative stocks and always looking for a home run stock usually end up striking out early.
I would like to share what I have learned from investing in the stock market over the years. If you stick to these principles, it is very unlikely you will lose in the stock market in the long run.
Few tips before buying stocks:
1- Always know your risk appetite, be prepared to lose your money if you purchase any speculative or aggressive stock.
2- Understand the difference between investing and trading stocks, I like to invest for at least 12 months or longer.
3- Buy stocks like buying a business, always buy a solid value or growth stocks.
4- I usually buy with limit order, not market order.
5- Use stocks as a source of passive income, buy a mixture of high value dividend and growth stocks.
6- Don’t buy a stock on the basis of price, buy for its value, cheap stocks are cheap for a reason.
7- Know the business well before buying their stock.
8- Learn how to read their financial statement, i use Yahoo finance and investopedia as tools to do my research.
9- Never buy all the stocks at once, buy a few at a time when stock prices decline due to overall market decline.
10- Buy Low and sell high, when the market is down significantly, buy great companies at cheaper prices but when the market has gone up significantly, raise cash by taking profit.
My recommendation for next week.
AMGN
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Disclaimer: I’m not a financial expert nor have any financial training. I like to read and educate myself in any business I invest in, the same is true for equity purchase and I like to keep myself updated regarding the stock market. All my recommendations are merely my personal opinion on the basis of my own research. Please understand the risk and benefit of investing in the stock market. Please be an investor Not a trader.
I will issue my favorite stocks every week. Please do your own research before purchasing any equity.
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