Friday 17 June 2011

Share Tips for Share Investors

In today's world, when people trying to earn quick money many have trusted on share tips for their earnings and share market is a place to invest. No doubt share market, earns you big money but also involves best share tips also.

Ten share tips for first time share investors :

1. Set your objectives and work out a budget for how much you want to invest.

2. Avoid speculating. Do some homework about the risks of investing in the stock market and spend time gaining knowledge on how the stock market works.

3. Take a long-term view of your investment.

4. Avoid reacting to short-term pressure and expect some volatility in the market.

5. Identify quality shares in a growth sector. Look for good quality management in
industries likely to grow in the future.

6. Diversify your portfolio to spread your risk. This should ideally include about 10 stocks. Less than 10 are not enough diversification and more than 15 is too hard to
handle.

7. Compliment your Indian share portfolio with shares. Exposure overseas can typically be through managed funds.

8. Buy into a managed fund if you only have small amounts of money to invest.A managed fund is an investment where you have a manager that gives you diversification in pooled funds with other investors. To buy direct most advisors believe you need a minimum of $50,000 to do anything meaningful.

9. Monitor your portfolio as closely as possible on the performance of the companies you are investing in.

10. Seek professional advice from a qualified stockbroker or financial planner.

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