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Beginner Investing for Dummies

Beginner Investing; no one is born to be an investor as this is not included in our syllabus during our school days and college life. As a beginner investing; we need to learn ourselves by attending special courses, surfing for e-book and hanging out in the bookstore. I am not an expert but let me share with you some I have learned which are very useful and summarized it for you;

1. Investment and Diversification

The saying, "don't put all your eggs in one basket" is consequential when it comes to as a beginner investing i.e. don't put all your money in a single stock. What's more, you should buy fixed income securities (such as bonds) and stocks. This means that you should not choose only one type of investment in your portfolio.

2. Think it

Acquire and scrutinize as much information as possible before making your investment plans. This will prepare you about any problems a company may have, or what to expect from the investment you have made.

3. Set your goals

Resolve the price (high target price or low stop-loss price) at which you want to sell. Examine the interest rates to come to a decision what return you really want.

4. Minimize risk

The fewer you can afford a loss, the more conventional you should be in your choice of investments.

5. Greed is a curse

Don't expect your broker to recommend stocks that will double in value within a few months. If you do have a stock that goes up considerably, i.e. 50% or more, sell.

6. Think Big

The stock prices of companies may vary, sometimes adversely, in the quick-fix. Invest for the long-term, but bear your present financial needs in mind. You obviously do not know when you might require some of that money.

7. Value is Important

Undervalued stocks may also assist in making the most growth in your investment portfolio.

8. Tax Planning

Strategize income-splitting techniques and don't hesitate to ask your investment adviser about tax planning.

10. Ask a Professional

If you're taking the first step, take services of an economical professional adviser you can afford. Professional advice always pays for itself within a short period of time. Once you are used to the market, you'll be soon able to perform all the investigation yourself...

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