We have compiled a list of free stock tips to help you achieve success in your share investments. If you are a newbie in the stock market these tips should put you on the right track.
Tip #1 – Start by setting up a cash account, especially if you are a beginner.
Although a margin account can help you maximize your returns in day trading, it comes with the added requirement of having to maintain the specified margin ratio at all times. Failing to do so may require you to put in more cash or securities as collateral. A cash account would be much simpler as the amount of securities the account holder can buy depends on the amount of cash he has in his account.
Tip #2 – Avoid investing in foreign stocks, options and futures during the initial years
You may find many free stock tips with regard to investing in options, futures, and foreign stocks. However, it is better to avoid these stocks until you have gained a complete understanding of the stock market. These are very volatile in nature and may not be suitable for those who are new to the share market.
Tip #3 – Stick to only a few, top-notch stocks
Maximizing the number of stocks should not be your goal when it comes to investing. While it is good to diversify there is no need to invest in twenty odd stocks only because you have to. Do a thorough research and focus on a handful of stocks that are of high quality.
Tip #4 – Don’t be an emotional investor
There are a set of buying and selling rules you need to follow when it comes to stock investing. The decisions that you make should be practical and based on calculated information. You cannot let the natural ups and downs of the stock market influence your decisions every now and then.In fact the volatility of stock market makes it important for investors to be rational, calm, and level-headed at all times.
Tip #5 – Use a combination of technical and fundamental investment styles to pick winning stocks
This is one of those free stock tips that can help you go a long way in achieving success in investing. Successful investing is all about picking the right stocks and buying/selling them at the right time.While fundamental analysis helps you pick the right stocks, technical analysis helps you time your decisions correctly. Buying stocks of best companies at the perfect time can help you make big money.
Tip #6 – Buy high; but sell higher
Some free stock tips may tell you to buy a stock when it is at its low. But it is always better to buy a stock when it is at its pivot point. It is fine to chase it for a while; but never let the price go 5% more than the pivot. Volume action and chart price should tell you when a particular stock has reached its highest price. This is when you should ideally sell it off.
Share advisor is a best stock tip provider in India who offers many such free stock tips for you to achieve success in investing.