Here are some useful points to bear in mind before you invest in the markets:
1. Make sure your broker is registered with the SEBI and the Exchanges and do not deal with unregistered intermediaries.
2. All investments carry risk of some kind. Investors should always know the risk that they are taking and invest to match their risk tolerance.
3. Do not be misled by market rumours, luring advertisements or 'hot tips of the day'.
4. Take informed decisions by studying the fundamentals of the company. Find out the Business the company is into, the future prospects, quality of management, past track records etc. Sources of knowing about a company are through annunal reports, economic magazines, databases available with vendors etc.
5. If anyone, including your financial advisor, advises you to invest in a company, be cautious. Spend some time checking out about the company before investing.
6. Do not be attracted by announcements of excellent results / news reports about a company. Do your own research before investing in any stock.
7. Do not attracted to stocks based on what an internet website, research reports, addvisories promote, unless you have done an adequate study of the company.
8. Investing in very low priced of stocks or what are known as penny stocks do not guarantee high returns.
9. Be cautions about stocks which show a sudden spurt in price or trading activity.
10. Any advice or tip taht claims that there are huge returns expected, especially for acting quickly, may be risky and may lead to losing some, most, or all of your money.
Happy Trading!!
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