A smart investment plan is an investment planner made after deeply analysing different stocks across various sectors. However, it also includes a discipline, a set of rules and principles to not get carried away with the rise of market prices or sharp decline.
Control Your Emotions
Don’t spend much time in overthinking about your stocks, do not become emotionally attached to the company shares. If due to market crisis, a stock price declines for a valid reason, do not panic. If the drop occurs due to; bad management or a failed product of the company, failure of the company owners to adapt to new markets, then it is highly advised to sell the stocks then getting emotionally attached to the stocks. However, remember, if the stock value is falling due to drop in the sector itself and the company stocks are declining due to ripple effect then stay invested. Your non-emotional analysis is important. Panic or anxiety driven decisions always backfire.
Be Honest to Your Investment Commitment
If you think that stock trading is a quick-to-get-rich medium, then you are making a big mistake. If you are trading in to stocks for short-term profits, you are not behaving like an investor, but showing traits of a gambler. Most likely, you will make losses falling prey to manipulatedly priced stocks. Don’t blame stock market for your wrong decisions. Be honestly committed to stock trading if you want to pursue your investments for longer time. Regularly update your knowledge to understand conditions of the market. It is better you invest in fixed deposits after understanding prevailing FD rates with FD calculator, this way you will at least save money rather than investing your money in short term stocks.
Not falling into trap of highly priced stocks for immediate gain is popularly known as witty decision among expert traders. Completely avoid investing in stocks that show sudden surge especially this is true for companies that are fairly unknown with dicey growth predictions. Consider them same as unlisted companies who offer get-rich schemes. Fact of the matter is such companies are not properly managed and audited but they are preferred by scam traders who artificially rise the stock price of the company to later sell them in bulk. If you ever decide to invest such stocks, you must ensure you do deep analysis from your end, do not follow herd mentality of investing in such shoddy stocks. Without analysing the stocks and investing is driving your car in dark roads with defective headlights. Do not crash your investments, make witty decision.
Beware of Financial Advisors of Stock Market
Never pay heed to those online ads who offer you high returns in forex trading, commodity and stocks by managing your investments on your behalf. These financial advisors work on high margins with the shoddy companies, their main purpose is to make money on the commissions they get from the companies. They are paid heavy commissions for making you invest your hard earned money in such companies.
In most cases, consider your money likely to be vanished after seeing hardly any growth. In worst cases, you might never see such financial advisors again. never to be seen again. The alert point is when such financial advisors work secretly, do not transparently share about their other clients who made profits, claiming it would open up their strategy in the market. This will help their competitors to know how they are getting exceptional returns in market crisis.
Now that you know to make basics of making smart investment plan proceed further to know how to open demat account online. This is right time to open your own demat account and start trading online,