3 Important Points Before Investing In Stocks

The stock market is more than just a bunch of numbers flickering in values. It may just be a little tricky as well.

Sometimes you win, sometimes you lose.

Knowing which stock to pick should not be left to mere guesswork or hunches.

Here are 3 points to look at when you are trying to pick that “right” stock
to invest.

1) Take Right Action

Stock prices fluctuate. It is because of this fluctuation that offers investors to make money.

John Templeton summed up with this quote “Bull markets are born on pessimism, grown on scepticism, mature on
optimism and die on euphoria”.

How can you apply the right action to take advantage of the fluctuation?

The right move will increase the probability of your investment profit.
Most new and inexperienced investors only focus on the stock price.
Avoid doing that.

You can learn and apply chart reading and also understanding the company’s financials. This will help you make a better investment
decision and take right action.

2) Know What You Are Investing

Experienced investors are always prudent with where their money is going and constantly reflect if it is well-deployed. In short, they will want to know clearly what they are investing in. So should you.

Every stock in the stock market is a real business on the street. Take for examples such as Breadtalk Group Limited (SGX: CTN) and Sheng Siong Group Ltd (SGX: OV8). You can literally monitor and see their retail business in action.

So, if you don’t know what the company does, the simplest act is to visit their website and read.

You’ll find that this simple action can make you feel more at ease with your investment.

3) Never Buy And Forget

Never buy a stock and forget about it. You bet some people belong to this category. And it is a big mistake. Why?

That’s because investors’ sentiments and business nature are constantly changing.

Least you can do is to read the news about the company occasionally (even if you are busy), or take a look at the stocks chart. If you spotted something that requires your attention, then respond to it appropriately.

Yet another simple activity that can protect your investments.

Ultimate Investing Contributor – Ivan Loh

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