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.
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