1. Investment and Diversification
"Don't put all your eggs in one basket" is consequential when it comes to investing. You should always diversify your investment in your portfolio to lower down the risk factor and to ensure that your investment grows.
2. Think it
Acquire and scrutinize as much information as possible before making your investment plans. This will prepare you on any problems a company may have, or know the things to expect from the investments which 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 when you make your decision on the amount of return that you wish to achieve.
4. Minimize risk
The fewer you can afford a loss, the more conventional you should be in your choice of investments. All investments have their percentage of risk. Understand the reason that you are investing and decide how much risk you are willing to take.
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 vary, sometimes adversely, in the quick-fix. Invest for the long-term, but also bear your present financial needs in mind. You want to make profits in long term investments, and at the same time prepare for sudden rainy days where you would need fast cash.
7. Value is Important
Undervalued stocks may assist in making the most growth in your investment portfolio. However, do your own research and be prepared to wait.
8. Tax Planning
Strategize income-splitting techniques and don't hesitate to ask your investment adviser about tax planning.
9. Consult the Professionals
If you're taking the first step, take services of an economical professional adviser who you can afford. Professional advice always pays for itself within a short period of time. Once you get the hang of the market, you'll soon be able to perform all the investigation on your own.
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