Things to know before Diving into Share Market

If you are thinking of investments that could beat inflation and also give you good returns, one option might be to start investing in the stock market. If you have decided to do the same and go for it all by yourself, it’s not a bad idea. The stock market, when properly understood, can help you make a lot of money, but you can also lose all your money if you are tempted to invest randomly without knowing the nitty-gritty of the market.
Therefore, there are a few things you must know before you dive into the share market. Here they go:

  • Never jump blindly into stock markets
  • Stock market is not a money-making machine
  • Educate yourself, handle basics first
  • Invest only your surplus funds
  • Avoid Leverage
  • Avoid herd mentality
  • Diversify but refrain from over-diversification
  • Don’t try to time the market, follow a disciplined investment approach
  • Don’t let emotions impact your investment
  • Have realistic expectations
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