In the upcoming years, increment of salary itself not enough to cover inflation. Most people might not realiase how inflation can bring big impact to our life , as inflation grow faster than we can imagine. Instead to limit purchasing / spending , I choose to grow money by investing in stock. My target is return of 10 % - 15 % each year , so it give me freedom by age of 30 ++ to do.
WHY I CHOOSE TO INVEST IN STOCK?
Investing in business / property need huge modal, but nope for stock. It have no limit , you can start with how much you afford.
Unlike fixed deposit come with a stipulated lock in period, while stock actually so flexible money flow.
Its suitable for those beginner in investing.
Thanks to technology make everything so convenience, I can monitor my stock anytime / anywhere in fingertips.
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TIPS 1 : Financial ability
Understand how much your finance limit. How much risk that you can handle.
TIPS 2 : Classified your stock
I classified them into short term trading , mid term trading and long term trading. Every stock have their own value and risk that your willing to cop with.
TIP 3 : Study
Never buy in stock without study. Buy in without trading knowledge, I called it “GAMBLE” instead of investing. Educating yourself should be the first thing come before stock investment.
TIP 4 : Emotion
Fluctuation stock market cause by issue or factors. Our concept was “Buy low , sell high”. Without enough understanding about the stock/ company its might cause big lose due to stress / panic sell.
“Buy high and sell low” this is the common mistake can happen on everyone. Control emotion and be patience , don’t let panic/ anxiety/ stress affect your decision.
TIP 5 : Good Timing
Covid 19 brought down our country economic drastically. In the same time, another new star born in chaos. “Glove stock ” bring up good new for short trader. As a short trader , keep eyes on those potential stock , enter and exit in a good timing can actually bring handsome of return.
TIP 6 : Target price
Greedy is devil, it trapped humans. Its a phenomena investor demanding more earn as their keep invested money in stock when rising , and unwilling to sell when dropping. As a clever investor always know your entry and exit point.
TIP 7 : Diverse Invest
Diverse investment , diverse risk. Instead of putting all milk in a pile , diverse in few piles actually can reduce the percentage of spillage. When risk diverse , same goes to profit. If the trade was profitable, return might diverse too.
TIP 8 : Risk management plan
Every stock have their own risk. We cant predict the future either avoid loss. Not every stock earn. As investor, set your own risk management you, so cut loss before drastic drop. Willingness to accept small losses rather than counting equity , make your trading better.
TIP 9 : LESSON
Allow me to share good lesson I learned, I re- enter gloves stock by the April. News of vaccine launched hit hard on market, drag down most of glove counter. While everyone sold their glove stock, I decide to hold it. Stubbornness , my earning profit from ( +30 % )and hit lose of (-50 % )within few weeks. I admitted this is a painful lesson I gained. By focus on trading and accepting small losses.
TIP 10 : NEVER ALL IN
Never “ALL IN” your money in stock market. Make sure the money for investment never your life saving money. If your lucky enough, you can be a billionaire. What a bout if the luck wasn’t by your side? These why we often saw big headline newspaper of people bankruptcy due to failure stock investment.
TQ
This just a small sharing of mine.
I m a new beginner struggling to explore in stock market.
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