Some basic investment rules while investing in stocks or equities

Investing in the stock market is so easy that a 10 years old child can understand how to invest. People fail to earn money in the stock market because they do not understand some basic terms. Many people prefer to rely on their experience and fall in love with some specific stocks. For this reason, they lose their money sometimes.

Actually, timing is one of the most important factors in stock market. Those who understand the value of time hardly lose their money. In this article, I am going to discuss what factors mostly dominate stock market and how to select best stock in few words.

So now, the question is how to succeed in the stock market. We all want to make money but we fail the main reason behind it lack of knowledge. We fail to realize that the main secret behind smart investing is timing. In addition, fundamental and technical analysis plays a big role in stock market.


Some basic rules while investing to consider:

• Know about your selected company. Remember investing in a well-established company will never risk your money. Most of the time, they give dividend to their respective shareholders. So investing in a very well reputed company is much secure.

• Be attentive about news. News dominates the stock market a lot. Good news can improve share price on the other hand bad news can decrease price. So you have to be careful about the news and announcements.

• Know about fundamental analysis. Fundamental analysis means market capital, paid up capital, number of shares, P/E ratio, EPS etc.You have to know the impacts of these things.

• Technical analysis is related with Price charts, market volume, macd line and so many things. You need to know how to observe these things.
•  

Before making an investment decision you have to understand these things otherwise you may lose your hard earned money. So never ever, invest in stock market like a blind. Make your decision with your own brain.