Important Questions Before Investing In The Stock Market
There are some very important questions here before you decide to invest your money in the stock market. First of all, which money do you use? We suggest money for your investment is the one that is ...
First of all, which money do you use? We suggest money for your investment is the one that is not used to fulfill the requirement of everyday life. Then which one is that? The answer is your idle money. What is idle money? Idle money is the one that you do not need in the close time and if you utilize it in the stock market will not bother your day to day life.
Then how much is the amount from your idle money? Regarding that, it is of courses that everyone who wants to invest must know the ability of his/her self. Normally we recommend to range from 10 to 20 % from total of your idle money. You do not have to release moreover unless you are very sure that you will get profit from your investment in stock market. Always remember that making investment there having lost probability which is larger than other investment instrument like deposit and saving.
After you decide to make an investment in the stock market remember this important aphorism. Do not put your eggs in one basket. Among investor this is a common aphorism especially for you which have ever experienced in stock market investmentYes, this term is used to depict that in the stock market investment we do not ever put down all of our idle money at one kind of share. However, we better disseminate that into some kinds of share that having different liquidity level and fundamental ability. This is to anticipate if one of your share/ stock degrades and mainly will decrease your investment value.
Thus again before you invest in the stock market remember three things which I have mentioned above:
1. Use your idle money.
2. Maximum amount to invest is 20 % from your idle money
3. Spread your Investment. Do not ever you invest money only at one stock/ share.
Happy investment and try your luck!
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
Like challenges, love to learn many things. See his other articles at http://www.stockmarkettip.blogspot.com