Dealing with traders, financial advisors and stock brokers need negotiating skills and investor acumen.
Become Expert Dealers in Stock Trading
Especially while dealing with stock brokers use margin calculator, don’t shy to negotiate commissions and additional fees for their financial advice. Most financial products including their stock managers allow you to do this. After all, you get to save your own money. Put yourself in different situations, if you have an option, should you pay a consultancy fee or commission for stocks tips? In principle, a fee is always better for large amounts of money and a commission for smaller transactions.
If you are a smart and shrewd investor, you invest for the longer time to seek profits and you don’t undergo stress when market shows correction. If you do not like to invest for the longer term, want lower but secured profits, you should instead use a bank term recurring or fixed deposits or a certificate savings account rather than seeking stocks investment in the speculative equity markets.
When you are a stock trader that use trading apps to invest in different stocks, you have to keep your option open for long term commitments. This help you in generating higher return of interest over a desired period of time. You are free to sell whenever you feel the stocks crossed your targeted marginal price.
Timing the Market?
Spending time in the market matters, not timing the market that counts. Don’t ever try to time the markets or different sectors of markets without considering the technical analysis. You find several financial consultancy firms promoting that people become rich from timing the market and they hide the fact that most have lost large sum of money and lifetime savings in following timer tips for stock trading.
Instead the recommended method is to get rich is to take time consuming efforts in selecting right investment by taking into account; background, market cap, expansion plans, valuation and growth of the company.
Diversification of the underlying investments sector wise also helps – real estate, technology, oil, energy, infrastructure and BFSI of Indian stock market have historically shown immense growth. These types of stocks demand long term investment if you really want to make higher profits. Most beginners in stock market make the fundamental blunder of buying into stocks when they are showing growth but sell them during phase of sharp decline. This way they make losses there by devaluing their overall portfolio performance.
Penny Stocks Alternative
Keep your objectives open. If you want to stay invested in big stocks but losing money unexpectedly then use alternatives to fund your stocks. There are many penny stocks who do give high growth with low investments. They are seen as alternative investments due to their low price range. However, it is highly recommended to consider those stocks who are showing stagnant pricing range or minor growth. Secondly, you can also consider those penny stocks who moved from big stocks due to under performance by big companies.
Always check what products the companies are offering if it has no new offering do not buy such penny stocks. If the company has no new products, their consumer acquisition would be same, they cannot show growth over a period of time.