Compilations of Tips, select which you think will work for you.
1. You need to understand how the market works, knowledge is a must in order to spot the best possible stock.
2. Provide yourself with adequate information of the company you wish to buy, it's not after you invest that you make a research of the company you invest in. Make your own research, like, are institutions buying the stock, how's the volume of stock bought, Is the company stable or it follows the economy meaning cyclical, the company's labour situation, does the company provide products or services which are widely used or the demand of its product is increasing, Is the company diversified or is it dependent on only one product and etc.
3. Develop your own strategy like "buy low sell high" or "buy high sell higher" - try to know when you can sell the stock before you intend to buy and know the right time to buy, sell your losers dson't let your emotions dictate you. Cost averaging is also a good practice in portfolio accumulation and always practice diversification to minimise lose in case one industry or sector collapses. "Do not put all your eggs in one basket."
4. Always put in mind it's not good to buy stock just because it has a low price.
5. Don't concentrate on a single stock , always make the habit to follow few stocks and invest in what you know is the best stock.
6. Don't buy on recomendations alone always check first before plunging in.
7. Always analyze the market, is it a bull or a bear, beware of insider trading.
8. Always be ready to sell if you think you make a mistake in buying a certain stock.
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