How To Invest In Share Market – 4 Golden Rules

Investments In Share Market

Everyone has a desire to become rich so that his/her family has good life style like big house, car, good education of children. And all these things are achievable only if you’ve strong income flow.

Today, every individual enters the share market with a single dream – to become millionaire overnight. But remember; You Cannot Become Millionaire Overnight! It’s a golden rule of share market.

What kind of investors enter in share market:

  • Short term investors – Investments done for 3-6 Months
  • Long term investors – Investments done for a period of 3-6 MonthsYears
  • Day Traders – The one’s who depend on earnings from share market. They’re risk takers and end up investing a lot in a single day and avoid taking delivery of goods. 

From the above 3 classifications: 1&2 have been proven to earn reasonable returns whereas; the third one might earn a lot today but might lose everything on the other. So it’s an avoidable strategy.

Golden Tips For Investing In Share Market

  1. Spread your investments over two or more sectors.
  2. Choose your sector which is currently showing good movement and list down the top performing companies of that sector and shortlist good ones and depending on the time frame available, start investing for short, medium and long term
  3. Never invest entire sum in one day.
  4. Be patient, buy in phases when price is attaractive. This way, you won’t regret buying scrips at an unfavorable price.

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