A successful investment involves a process. Every investor develops his or her own process to make the most of their investment. A lot of research is necessary to make your investment worth your money. There are few basic things that every investor must know before they start any kind of trading such as intraday trading.
- Get a good broker – A good earning is the result of not just how much money you are investing but also how much time you spend tracking and adjusting your investment. If you lack the time or do not wish to be involved in such a tedious job, you can always hire a broker or a brokerage firm. Look for previous experience and also compare the fees and services provided. If you are new investor let the broker know your clear expectation and he can help you figure out your investment path.
- How much to invest – This is a very subjective question. However, the answer can be reached after thorough analysis only. Perform a risk analysis of your stocks, see which one suits you better. Also, undergo a personal risk evaluation to know how much your finances can tolerate. Along with this, set clear objectives for your investment to make it most fruitful. Making an investment plan by aligning goals is the best way to ascertain the amount you need to invest. Rather than investing a lot be consistent with your investment.
- Choose stocks that are comparatively safer choices – The stocks you choose are very important. While choosing them to keep in mind that you should choose stocks that are less volatile and more or less resistant to market vulnerability. Such stocks are typically the ones which cover a particular sector. Funds that re-invest in specialized areas are also easier to pick, as you can simply peer review them. Exchange traded funds are a great way of starting. In fact, many financial advisors suggest beginners avoid individual stocks.
- Calculate the fees – Always calculate the fees and taxes that will be deducted from your net gain. Understanding the taxation and fees will give you a fair idea of what to expect from the stocks you have invested in. There are many brokerages who offer no upfront payment and affordable fees.
- Practice to perfection – The best way to get better at anything is to practice it over and over again. Trading is no different. Research and analyze as much as you can. Get accustomed to all the tools for analysis. Use the online simulators and calculators to explore different possibilities. Keep practising the art of investment. Take your time and start trading once you are confident about your skills.
The best intraday tips that anyone can follow is staying alert of the market trend at every juncture. For traders who plan long-term, they can depend on more bolder steps such as ignoring minor losses. Start your trading by opening a Demat account made available to you by financial organizations like Kotak Securities.