Stock market for beginners
I am on a Mission to offer guidelines to help to create a profitable portfolio. You can reach me via email@example.com]Getting familiar with investing style:
Investing usually falls into one of two strategies:
Defensive[ Long-term objectives] and Offensive [Short term. objectives].
Defensive investing strategy looks to avoid stock market risk as it uses long term investing to post steady, consistent gains. Over time, defensive investing is the most likely to achieve its long-term objectives because it strict with investment guidelines to seek to virtually eliminate the risk in the stock market.
The second strategy Offensive investing is quite different. It is offensive in nature, looking to capitalize on opportunities in bull market. Offensive investing ignores or minimizes stock market risk as it looks to make rapid gains, mostly follow day-to-day market trend without following guidelines. Defensive investing means you take calculated risk and typically lower gains to consistently make money.
Gaining knowledge is necessary before you do anything with your investment money. Pick a few stocks that you think will increase in value and then track them for a while probably 3 or 4 weeks and see how they perform. Begin to understand how the price of stocks go up and down, and watch what happen to the stocks you chose when various events take place. This entire topic here is to build a stock trading plan, strategies, trading objective, and involve in stock market education, and have enough experiences in order to reduce the risk and play as a master investor. The bottom line is that you want to make sure that you are in control of your mind; you have learned enough, and gained experiences. Now, you are confident and able to analyze. As you are new to investing and getting ready to invest in the stock market then keep in mind that there is a large element of risk involved unless you reduce risks and exposure with care. A significant part of the risk comes from not knowing—the necessary knowledge of stock market, and the experience in investing.
Learn to invest small amount in different stocks, you might make loss but experience will make you an expert and will help to generate huge profits in future. This may take time to develop all the necessary skills to plan and execute trades in such a manner as to maximize profits. However, the rewards for success prove to be well worth the risk one takes by investing in the stock market.
Take care and all the best!