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What are some best free stock market advices to follow?

There are many stock tips provider in India which provides stock market tips on intraday, weekly, positional, and yearly segments across equities, commodities, and currencies, etc. Unfortunately, India is a developing country where only 2-3% of the population is invested in the stock market. Whether you believe it or not it is somehow related to the reluctance of taking professional tips from stock advisors.

But, truth is since most investors and traders are beginners in the stock market who aren’t aware of trading strategies and stock analysis. It is also true that many people lose money in trading stocks is not because they couldn’t afford professional expert but due to lack of knowledge and discipline.

There are certain things that you need to consider or implement before investing or trading in the stock market. Here, I’m going to provide some free stock market tips (or advice) that may not make you rich overnight but benefit you in mitigating losses, at least.

5 Free Stock Market Tips You Can Follow

Today the stock market is not what it was a decade or two ago. The market volatility plays a major role in today’s stock market. It is the volatility that many stock investors and traders are in dilemma that whether they should buy, hold or sell.

With these stock market tips, I believe you will have some insight or help in investing or trading.

Setting you goals

Anyways, if you are a beginner investor or trader in the stock market then the very first thing you should do is trying to set you goals. You must ask yourself – “Why are you invest in the stock market?”

Is it to make short-term money?

Or, is it to save for retirement?

Maybe something else like education, new car or marriage?

Whatever the reason is, you must clear your mind and decide on that. With the right goals, you can make good profits.  

Risk Management

The next step is to manage risks before it starts weakening your capital investment. Generally, there are two types of risks:

  • Systematic
  • Non-systematic

Systematic risk affects the entire market not a single stock however the unsystematic risks are associated with a company or sector. If you are planning to do long-term investment in the stock market then you must be aware of systematic risks since they affect the whole market or index but if your intention is to start trading then I would recommend you think about portfolio diversification. Unsystematic risks are associated with the company or sector. When trading in the stock of a company, the unsystematic risks plays a major role and can be reduced by diversifying a stock portfolio.

Fear & Greed

As once Benjamin Graham once said, “Individuals who cannot master their emotions are ill-suited to profit from the investment process.”

It is the emotions that what drives the stock market and make people make illogical decisions. Therefore, it is very important to keep your emotions under control especially when trading stocks. When a trader caught in greed after seeing a surge in share price desires for more profit. When the stock market reverses, the trader ends up losing all his/her capital in just a few seconds.

Similarly, when the stock market plunges, the trader or investor becomes more cautious and fears the market volatility. As a result, the investor or trader full of negativity sold his/her stocks and end up losing money. So, to make sure it won’t happen to you – always focus on the stock valuation. Is it too overpriced underpriced?

Do Your Research

It would be a mistake to choose a stock for investing or trading without performing fundamental or technical analysis respectively. It is clear that no one can predict the future price of a stock but an in-depth analysis of a stock can help you to forecast the future the direction of the market and share price.

If you are an investor and investing for long-term then fundamental analysis but if you are a then technical analysis is very important for you.

Avoid Leverage

Last but not least, avoiding leverage to invest or trade-in stock market. Specially, for those who are beginners in this industry. Borrowing money to invest in share market is not the right decision. Think about it! If you use leverage to trade in stock market in believing that you will make good profits in the future but what if the market go against your expectations? You will be facing much greater losses than you ever imagine.

This is my list of top 5 share market tips. I understand it is not enough but if you follow these 4 stock tips then it will benefit you in many things like whether you should invest for long-term or short-term, manage risks, the importance of research, do not make decision in emotional state, and avoid leverage as much as possible, etc.

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