Stock Market Investing: 5 Tips

Even though stock market investing is the most risky investment tool, but further stock investment is one of the most profitable. If it is diversified, by selecting stocks of companies from different sectors, and examines the long term. With a good portfolio of shares, in 10 years can double your money up to 25 times from now.

Investing in stocks is usually more profitable than fixed-income products such as deposits or treasury bills and not too risky if you do long term and diversify.

Below are 5 tips of Stock Market Investing. These are purely based on my analysis and also summarized from articles, discussions, by the experts.

1. A long-term, patient
When invest in stocks need ability to spare money for 5 years at least and better yet if it is for 10 years. Be patient, do not buy or sell by moments of euphoria and panic that sometimes occur in the stock markets.

2. 55% in stocks, the rest in other investments
Do not invest only in stocks. Diversify between equity and fixed income, property, etc. In this way will reduce the risk. If your time horizon reaches 10 years, should devote 55% of savings into stocks. Number of percentage in this case, may be different for everyone’s portfolio. The point is the bigger the time horizon of investment, the bigger the money (should) invest.

3. Invest in different sectors
As it said that don’t put all your eggs in one basket, do not invest in a single action. Do it in several different sectors and, if possible, from different countries. An example of sharing could be like this:
• 32% in financial sector companies;
• 24% in the telecommunications sector;
• 18% in energy-related businesses;
• 10% in technology;
• 8% in pharmaceuticals;
• 8% in the automotive sector.

In the financial journals you will find regularly updated portfolio to recommend buying shares.

4. Find a cheaper broker
To operate on the stock exchange, it is necessary to have a financial broker. Choose one that offers good conditions, such as easy accessible, and that fits your profile. In general, securities firms are cheaper than banks and savings banks and operated by phone or Internet is more interesting than in offices.

5. Stay informed
Try to be informed of the progress of companies and their quotes. Apart from the magazines and supplements devoted to the economy in the newspapers, find financial advice from the newsletter and website to monitoring of your portfolio.

With the ever changing and volatile behavior of the stock market, make sure that you remain smart in your investments. Take the extra mile, and you will realize that all of your efforts will pay off once you get good profits, of your personal financial planning.

You may put your opinion below.
Happy investing :)

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