10 Golden Rules to Adhere Before You Invest in the Stock Market

best investment banking and capital market course by IIM, Calcutta

If you have extra money, it is better to invest them in shares for higher returns. However, it is not guaranteed that you will generate huge revenue by buying stocks. There are several risks associated with buying/selling stocks, and you need to address them.

Proper research should be conducted before buying shares to avoid any risks. Young enthusiasts that want to become successful investment bankers should know about the stock market, trade finance, and other aspects of the capital world. Read on to know ten rules that should be followed before investing in the stock market.


  • Ignore the herd mentality


You cannot invest in stocks of any business just because everyone is investing in that business. You should research on a personal level to know which business is best to invest in. Your stock investment decisions should not be influenced by some other person. If you want to take advice, better take it from a stock market expert.


  • Collect information


You cannot just buy shares of a company because it belongs to a booming industry. You should collect information about a company before buying its stocks. Investors always read equity research reports before investing in any company. The equity research report consists of the financial performance of the company and associated risks.


  • Study the trends


You should invest in a business that you understand. When you understand the industry practices, you can predict whether the stock will overperform or underperform. To predict the performance of a company’s stock, you can study past trends. If the company shares have fallen several times in the past, it may not be a good investment option.


  • Do not panic


Many investors panic when a market disruption arises. The key to success in the stock market is to follow a disciplined investment approach. You will have to show patience during the market disruption. If market volatility increases, you can wait it out by keeping the bigger picture in mind.


  • Don’t chase emotions


Many people lose money in the stock market because they invested due to emotional reasons. Greed is the biggest reason why some people lose everything in the stock market. Don’t invest in stocks if you are in search of wealth overnight. With consistent and disciplined investment, you can make money out of the stock market.


  • Diversify your investments


Your stock market investment portfolio should be broad. For lower risks, you should invest in numerous businesses. Try buying stocks of different companies that can provide huge returns.


  • Invest extra income


Don’t invest your spending in the stock market. You should always invest the extra income that you make in the stock market. It is important to analyze your financial situation before you buy shares.


  • Monitor your portfolio


An event in some other part of the world can also affect the financial market. It is better to monitor your portfolio rigorously for better results.


  • Hold stocks for a longer period


People hold stocks for a shorter time for small profits. However, successful investors hold onto stocks for years and generate more revenue.


  •  Keep an eye on market performance


You should be aware of upcoming disruptions or volatilities in the stock market. You can read forecasting reports to stay ahead of time.

How to learn investment banking concepts?

You can go for institutional banking and finance courses after graduation. However, institutional banking and finance courses after graduation are costly and do not offer flexibility. Instead, you can choose the MBA in Investment Banking & Equity Research offered by Imarticus Learning.

This online MBA course is provided in partnership with Jain University which, is a premier institution. Start your JAIN MBA Course now!  

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