Swing trader, Nikit Shingari, gives 13 fundamental stock market tips to Traders. Nikit Shingari has been doing stock trading successfully for so many years.
Nikit Shingari defined stocks as equities given to those who buy shares of a company. If a person owns the stock of a company, he owns a percentage of that particular company. Stocks give the stock owners the ability to have a say in the running of the company.
How do you buy and sell stocks?
Stocks are bought and sold on the stock market. Firms that want to sell stocks go public and list their stocks on the stock market. Furthermore, a person can buy stocks when available and sell them whenever he wants. The stock owner can also sell the stocks in different currencies. For example, you can buy real estate stocks in dollars and sell the stocks in euros.
Why Do Firms Sell Stocks?
Firms sell stocks to raise money for their business operations. People who are interested in such firms will buy the stocks because they know that they will make a profit. After a while, the firms give the stock owners a return of investment or dividends at the stipulated time. These dividends are given to each stock owner according to the percentage of stocks he buys.
Similarly, if the firms didn’t do well, the stock owners will lose their money and not get any dividends.
Therefore, prospective stock buyers need to know how to buy the right stocks to make a profit.
This is why Nikit Shingari has these 13 stock market tips to help new traders.
13 Stock Market Tips
- Carefully research the brokerage firm to know if they’re reputable and the cost of their services. You also need to read their customers’ reviews. This will ensure that you get good guidance during your trading period.
- Ensure you open brokerage accounts with a reputable virtual stockbroker.
- Invest in the right firm: This is an important thing traders must take note of before buying stocks from the stock market. The right investment yields the right profits. The wrong investment leads to a loss of money and time. It is easy to see the previous performance of the firm you want to invest in. However, it is not easy to predict the future performance of that firm. You need to do a stock analysis of the firm you intend to invest in. This will determine if you should go ahead with the investment or not. In addition, you will need to learn stock management techniques to make a profit.
- If you are new to trading, do not buy individual stocks: Individual stocks are for professional traders who know the ins and outs of trading. They already know risk management and mitigation techniques to minimize possible risks. However, a new trader is still new to all this. He might not know how to monitor the market trends. New traders shouldn’t buy individual stocks, no matter how huge the profits are. This is because individual stocks have higher risks than other stocks. Lots of new traders rush to buy individual stocks because of the benefits and end up losing money. Therefore, it is advisable to only buy individual stocks only when you are a competent trader.
- Diversify your Investments: Never make the mistake of buying only one type of stock from the stock market. Buy good stocks from different sectors. For example, you can buy stocks in the agricultural sector, health sector, real estate sector, and many more. When you buy only one type of stock, you are relying on only one source of revenue. Buying different stocks gives you more money. Similarly, if the stock of one firm falls, the other stocks might generate money for you. For example, you bought three stocks from a health firm, a grain farm, and a real estate firm. If the stocks of the real estate firm fall, you may get profits from the other two stocks. This method is also a risk management method, it reduces your risk of loss.
- Get Ready for Possible Risks: Some stock owners hate the thought of losing their money, which is understandable. However, every investment come with risks. This is with the stock market. The stock market is volatile, that is, it is not stable. The stock market may rise and fall at any time. You should be prepared to accept your profits or loss.
- Use Demo Trading Before You Do Real Trading: There are demo trading available on various trading platforms. This is to prepare new traders ahead of real stock market trading. The demos are built to teach new traders about profits and loss, risks, and trading methods. To use the demo, you will create a demo trading account, trade with fake money, and get familiar with the stock market. Demo trading is also a risk-mitigating method.
- Invest for a long period and be dedicated: Most traders don’t have the patience for long-term investment. They just want to invest and make quick, huge money in a short period. They risk it all and use money meant for paying their bills or borrowing money to invest. When this investment fails, they get frustrated and are left with debts.
- Keep Your Emotions in Check: You can do this by limiting the number of times you watch or read financial news. Otherwise, you will always be anxious about the state of your investment. This is not good for your health. Additionally, don’t check your portfolios often in order not to become impatient with your investment.
- Don’t delay Your Investment: Once you have made up your mind to invest, and you have the fund, don’t delay it. Invest now. There is never a perfect time to invest. Otherwise, you will never get the investment opportunity you are looking for.
- New Traders should avoid Complicated Trading: New traders should purchase and sell simple stocks. However, when you become an expert trader, you can advance to more complex trading.
- Know How to Manage Risks: Do you know how to manage risks very well? Are you okay with investing your money even if you might lose it all?
- Know the basics of trading: It is important to have basic trading knowledge. This knowledge includes stocks evaluation, risk mitigation techniques, tax rates on investment, and so on.
Nikit Shingari advises traders to familiarize themselves with the above tips to make profits from their investments.