Apply the 10 stock buying tips below to make sure you are doing everything you can to be successful when investing in stocks! These 10 stock buying tips are sometimes simple, but they are also very important! Also implement the 2 tips directly!
1. Don’t invest in something you don’t understand!
The famous investor Warren Buffet has one of his most important quotes: “Don’t invest in something you don’t understand”. This makes sense, of course, but at the same time there are many investors who do not apply this principle. Many invest in something they do not really know, for example, what the company or the market is doing. If you do not know this, it is not wise to invest in anything at all. So never invest in something that you do not understand!
This tip is crucial. In order to be able to analyse a share, you really need to be interested in the company and the sector in which the company is active. If steel does not interest you, it is wise not to do anything with the ArcelorMittal share either, a lot of German Forex investors also lost a load of money by using a broker that sold fake shares.
2. Make a distinction between investment methods
Many investors do not understand the difference between short-term investment and long-term investment. It is crucial to understand this! With short-term investments, the technical analysis is the most important! With long-term investments, the fundamental analysis is the most important! Go to the corresponding pages on this subject and make sure you can make the right distinction!
By knowing what the difference is, you ensure that greater returns can be achieved. It does not matter which investment product is involved, whether it is buying shares or, for example, currencies, raw materials, etc., you will be able to achieve greater returns. Looking at the short term, it can be concluded that the exchange rate can fluctuate widely. Over a somewhat longer period of time, these fluctuations are less important. This is also the reason why there is a distinction between short-term and long-term investments.
3. Behave as an interested party
Shares represent an ownership interest in a company. When you buy a share, it is therefore also important to behave like a stakeholder in the company. For long-term investments, this means regularly analysing annual financial reports, assessing the company’s competitive position and forecasting trends. It is also important to stick to your convictions and not act impulsively! This is completely different for short-term investments (see tip 2 at C-TradeAlert.com).