Warren Buffett's Best Advice on Successful Investing

Is it Wise to Invest in Stocks Whilst Still Learning?

It is not at all advisable to begin investing in stocks while still learning the tricks of investing. Investing in stocks is a serious business and inadvertent errors could destroy capital and make an investor averse to stocks.

However one can invest in mutual funds and exchange traded funds without hesitation whatsoever, as they are solely meant for people who are not proficient yet in investing independently and directly in shares. One can also subscribe to a systematic investment plan or SIP at any time.

If a person is from a finance background, understands financial statements, and has some prior experience with stock markets, may venture with small amounts after thoroughly understanding the principles described in the article, ‘What are the Factors to be Considered Before Investing in Shares of a Company?’.

But do not ever indulge in day trading or margin trading.

In conclusion, it is inadvisable to start investing in shares and share markets directly without having a firm grip over the subject.