9 of 13

Write now Article Tools

Many young working executives out there are the people who are very much keen of starting a portfolio. Once get their security account, the first instance when they are able to access to their account they wanted to buy something. Correct me if I am wrong, but that is the fact.

Well, for people who are more patient minded and would take the effort to learn will benefit more than those who rushed into frantic buying and chasing after unrealistic stock price tags. Be it as it may as many reports that revealed technical indications, people will still try their luck to chase after prices. "This time is different", they would probably say. Familiar? Of course it is.

Here are some tips for the impulsive lot who wants to know more about the market.

1. Before buying an equity or a security counter, read their annual report and make sure it is a money making firm.

2. Check the 52 week high because chances are if you buy now, you are actually going to be the one that bought over the stock at it's highest.

3. Make sure that you are comfortable with the prospect of this company. For example were there any dividend being declared yearly and so on.

4. Do not resort to speculation and do not use borrowed money to hold the stock. You will have to juggle with interest rates when your counter dipped.

5. Try dollar cost averaging during technical correction. Understand technical correction. It is the behavior of a fallen market after a recent run up and there are no bad news at all.

6. Try to understand technical analysis. Read on RSI, candle stick charting, MACD and moving average. These are the few very important indicators. For candle sticks, you only need to understand spinning top and hammer formation. They are the most useful to assist you in when to buy and when to sell.

7. Always set a ROI or return on investment. Say 30%. It is a good practice as it usually align with your investment appetite and financial goals.

With these tips being equipped, I do not see why are there 90% loser in stock market according to market sayings.

Learn more about this author, ARC IDEA CO.
Click here to send this author comments or questions.

Add your voice

Know something about Tips for young investors?
We want to hear your view. Write now!