FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» LANKEM DEVELOPMENTS PLC (LDEV.N0000)
by Wolf86 Today at 2:00 pm

» ???? අප්‍රේල් 16 ???? මේ දින 3 කෙටි සතියත් කොළපාටින් අවසන් වුනා
by dayandacool Today at 1:58 pm

» First capital holdings CFVF.N0000
by Eranga87 Today at 1:49 pm

» GLAS will be winner with Super Gain.
by Eranga87 Today at 12:30 pm

» Lanka Walltile PLC Investment Case
by judecroos Today at 8:55 am

» Which is the best at current market condition ? ( At least 30% within 30 Days)
by judecroos Today at 8:39 am

» Daily Foreign Transactions
by Pradeep90 Yesterday at 8:03 pm

» Big opportunity in Kegalle Plantations
by EquityChamp Yesterday at 2:58 pm

» RAIGAM WAYAMBA SALTERNS PLC (RWSL.N0000)
by stockchaser Yesterday at 2:42 pm

» විජේදාසගේ... voice cut ප්‍රතිඵල
by nigma Yesterday at 11:59 am

» If you buy a stock that’s not going up in price, you won’t make any money. STOCK market for beginners
by dayandacool Yesterday at 11:31 am

» B P P L HOLDINGS PLC (BPPL.N0000)
by vikiperera Yesterday at 11:17 am

» VPEL VPEL VPEL
by invest thinker Yesterday at 10:23 am

» Thoughts on SINS
by Swissinvest Yesterday at 10:04 am

» VFIN / VPEL / PABC - Share SPLIT or VTWO ?
by WealthKing Yesterday at 8:33 am

» DIPD/HAYC/HAYL
by Harry82 Yesterday at 5:46 am

» ROYAL CERAMICS PLC (RCL.N0000)
by shan31 Thu Apr 15, 2021 11:22 pm

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by Jana Thu Apr 15, 2021 11:15 pm

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by learningthemarket Thu Apr 15, 2021 8:18 pm

» LOLC Share Price
by EGG Thu Apr 15, 2021 5:59 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » Golden rules of investing in stock market

Golden rules of investing in stock market

Go down  Message [Page 1 of 1]

sriranga

sriranga
Co-Admin
The stock market can be an excellent place to invest over the long term to create wealth. But in order to reap the benefits of investing in the stock market, investors should learn as much as possible about the market, before investing. Whether you are a new investor or have been investing in the stock market for a while, the following should help you to succeed in the market.

Don’t buy on tips
A retail investor is typically the last one to know of tips. Hence, he is most likely to invest when the stock has already run up and hence, at a risk to lose money. Try and get research reports from reputed brokers. Learn to read balance sheets and understand the industry the company operates in. Ignore hype and most importantly, do not depend on ‘market tips’ your friends always give.

Don’t invest in a company you don’t understand
Famed investor Warren Buffett often discusses the concept of a ‘circle of competence’. This circle of competence consists of all the businesses with which the investor is familiar with and thoroughly understands.

An investor who has spent the last ten years as a checker at a supermarket would have an advantage when analyzing the financial statements of a grocery store chain. He or she would be able to pinpoint the strengths and weaknesses of the business, evaluate the competitive climate of the industry and compare the performance of a prospective investment against those of an excellent grocer.

Straying from the circle of competence leads a would-be-investor into the land of speculation. Therefore, never buy a stock that you don’t understand.

Don’t confuse investing and trading
Trading is short term and investing is long term. Getting confused between the two can be a sure way to lose money. You must decide on what your ultimate goal is by participating in the stock market. Not many would argue the fact that a certain amount of skill and research is necessary to make good long-term investment decisions.

It is no different with trading. Take the time to learn what works and what does not. Learn from past mistakes and allow yourself to succeed. Use a trading base of capital that you are comfortable with and allow profits from your trading activity to be rolled into long positions, thus satisfying both strategies.

Don’t panic at short-term trouble when your goals are long term
Volatility is the basic characteristic of a stock in short term. Hence, capital erosion should be considered normal. The good news is, although past performance does not guarantee future results, historically, the market has always rebounded from its losses.

If there’s one thing the current market has taught investors, it’s that diversification is important. Individuals who ignore the time-tested strategies of asset allocation and diversification do so with potentially more risk.

As long as your investments are fundamentally sound and fit your financial goals, a temporary downturn in the market should not sway you.

If you need cash in short term, don’t invest in stocks
In stock markets, one can benefit only if one can hold on for a reasonably long period. Like the fabled tortoise that beat the hare in the race, the investor who stays in for the long term is more likely to achieve his or her goals than the investor who chases ‘hot tips’ for quick profits in the stock market.

If you have a long-term perspective, you can change investments that aren’t working for other alternatives. However, if you will need the money from your investment in the near future, a mistaken investment can create real problems in meeting your goals.

Investors that begin early and stay in the market have a much better chance of riding out the bad times and capitalizing on the periods when the market is rising.

Don’t have excessive expectation about returns
A big part of succeeding as an investor is having the right expectations about what you can achieve by putting your money into stocks. It’s not a big secret that people invest because they expect to make money.

Indeed, many succeed. But others are disappointed either because they overestimate the return they are likely to get or because they are unwilling to risk any of their principal to earn a higher return.

As you invest to meet your financial goals, it’s critical to understand what buying securities can do for your net worth and what it may not be able to do.

Despite all the investing information that’s available, it’s unclear how many investors really understand the constant fluctuations of the securities markets and what they can reasonably expect to earn on their investments.

It’s true that historical trends show that over time, securities, stocks in particular, tend to go up in value. But the shorter the time horizon, the more difficult it is to predict even for investment professionals, what direction the market may be headed. Only one thing is certain: The values of securities will go up in some years and just as surely as they will go down in others.

Don’t try to time the market
Market timing is an investment strategy where the investor makes investment decisions, to buy or sell investment securities, based upon predictions of the future.

Buying at the bottom and selling at the top is next to impossible. Take ‘buy’ and ‘sell’ calls based on your views on valuations.

Most would agree that market timing may be possible over short periods of time but it is more difficult to consistently and accurately predict stock market movements over long periods of time. For the average investor, a diversified portfolio, held for the long term, is the best strategy.

Don’t invest without a plan
A well thought out plan and discipline in implementing it can safeguard your portfolio from impulsive mistakes. Good financial investment advice is to have an investment plan for investment in stock. This is an important means of controlling the potential emotional roller coaster that can be associated with stock investments.

Your success with value investing will largely depend on your temperament and to what extent you can exhibit patience and discipline to make the best investments. Sticking to a plan is part of this process. While plans may vary from investor to investor depending on age, capital available and investment time-line, most plans for investment in stock should have some common elements. These elements include having a buying strategy, a selling strategy, a portfolio management strategy and a strategy for performance management and review.

Be diligent
The best way to ensure the safety of your money is to be diligent. Get yourself organised and keep your papers in order. If you are applying for an IPO, keep a copy of your application form and cheque. If you are buying and selling through a broker, check your contract notes and file them away safely. If you have all your documents in one place, it is easy for you to spot fraud and take action against it.

Stock market investing is fraught with risks and not for the faint hearted. But facing the risk of an intelligent and calculated transaction going wrong is one thing and having to lose your money because of greed or laxity is another.

(Source:investorzclub.com/rediff.com/beginnersinvest.about.com/tradingstocksguide.com/mutualfunds.about.com)
http://dailymirror.lk/business/features/22686-golden-rules-of-investing-in-stock-market-.html

http://sharemarket-srilanka.blogspot.co.uk/

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum