The stock market is often touted as the perfect place to make money quickly. However, investing in stocks requires time, discipline and a structured approach to investing. It also requires patience, and a long-term horizon for investing.
It’s easy to be lured by the promises of speedy returns and a quick fix, but the truth is that investing in stocks is a lengthy process that has many ups and downs. Long-term investments can yield substantial rewards. To help you to achieve success here are some share market tips for novice investors to be aware of prior to starting.
Don’t Be a Jack of All Trades
New investors frequently make the mistake of jumping from one strategy to the next. This can be costly, especially for those just beginning their journey. For instance, some novices attempt to be «jacks of all trades», switching from buying and trading short-term investments (options or futures) to investing in US stocks. But this could be risky and costly due to the high amount of transaction fees exchange rates, transaction fees, and currency conversion charges.
Stick to one investment strategy instead, and concentrate on the value of a stock in the long-term. Avoid overreaction and focusing on the short-term effects of events. Be sure to check your stocks each quarter or when you receive quarterly reports. Most importantly, don’t get in the search for the next big thing.