September 28, 2018 / BY Faizan Shahzad

Few Dos and Don’ts of Investing in Stock Market

Investing in the stock exchange market is a great way to ensure your money’s safety. Taken you are one of the people who like a long-term investment with no regular checkup commitment or anything. But, as good as this idea seems, it is certainly not easier to invest in stock exchange market considering if you are new at this and not aware of the risks involved.

However, success stories like of Aqeel Karim Dhedhi in stock exchange guides us through some dos and don’ts of investing in stock market, enlisted below:

Dos:

  • Research is the key:

Research is the answer when it comes to investing your money or pursuing a job. So before locking your hard earned money into a stock market, mutual fund or other investment, do a thorough research on it and be sure that it’s worth investing your money. For starters, it is beneficial to always deal with a broker registered with SECP and in case you need to verify them visit websites of SECP or stock exchange for further assistance.

  • Spend only if you've surplus funds:

If you are ready to risk your money then check if you have any surplus fun or not? If yes, then you are highly advised to invest in a well-researched company if not then it’s not worth it. An intelligent mind firsthand thinks of the consequences he/she has to surface and then does the investing thing. However, in most rare cases, there comes a chance when one instead of losing all his money actually gains profit but mind you that happens very rarely.  

  • Risk management and money management rules:

For a good investment, you need to form up a risk and money management rules and learn to abide them all. A good investor manages to have an investment plan and abide by it all the time. Aqeel Karim Dhedhi also operates by the same principle and hence a successful business investor. One of them could be to make payments through crossed cheque in the name of the broker. Also, Make sure to receive a trade confirmation within 24 hours and always Obtain a copy of the schedule of application fee and charges from the broker for your record.

  • Stay updated:

Doing any kind of investment or even when starting a new business, one must keep updated about financial markets and their relevant impacts, no matter how small or big it would be. Foremost beware of a sudden spurt in price or trading activity. Hence monitor your portfolio and all relevant changes it runs through.

Don’ts:

  • Never follow others footsteps:

Sometimes, the majority of investors invest in a particular stock which is majorly followed by others which might go okay that particular time but might be end-up beneficial for you. So, use your logical thinking and invest in some other profitable ones.

  • Never let your emotions take over:

Emotions are the most dangerous weapon that you cannot afford to have while investing in a stock market. Especially fear and greed as they tend to overcome your logical thinking and you start investing blindly which after a long run ends up quite a disaster for you. So if you are one of those people whose emotions take over their rational decision-making then you might need to reconsider investing in the stock market.

  • Double check all documents:

The smartest and most mainstream rule is to first read all documents and that too twice times before signing or executing any further actions towards the deal. So double check all terms and conditions addressed in the documents before any further action.

  • Transaction documents:

Keep hold of transaction documents and never give it to anybody for sake of your goodness or generosity. Also, never to do any transactions based on media reports or tips or any promise or greed.

  • Guaranteed returns:

Lastly, never ever to fall prey to guaranteed returns.




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