Do not invest in State-owned companies
I don’t particularly like to invest in state-owned companies. This type of action fluctuates a lot, is more dependent on politics, the regime for hiring and firing employees is different from the market . In addition, they are often used as electoral cables to promote candidates, they can get involved in scandals more easily, some positions are real job booths, etc. Avoid this type of action, there are many options on the stock exchange.
Diversify your investments
Do not buy shares in a single company, buy from several companies. I find it interesting to have at least 5 companies in my portfolio. If one or two of them are bad for the others they can compensate and balance the portfolio , if everyone is bad, it is probably a fall in the market as a whole, again, you don’t have to worry in those cases.
Don’t be a sardine! Be calm and patience
This tip may sound silly, but it is not. Sardines are the small investors in the market, well you can start with little on the stock market, but be mindful of a big investor, shark. Do not keep changing your position because your share fell 1%, or if another one is rising 4% and you are interested, set up your stock strategy and stay on the plan, do not be shaken by market fluctuations.
News has a tendency to inflate a share price up or down a lot in the short term, do not invest based on recent news. If one company announced a merger with another, you may think that this is a great opportunity, and in fact it is, however, the big investors have known this news for a long time and bought the shares well before hoping people will buy later . In that case they will make a good profit by selling the stock on the day of the news at 5% or 6% and can buy it back after the stock goes down.
Filter the advice
Knowing how to filter the information that comes to you is a virtue that comes from experience and market knowledge. But one of the tips most propagated by investment experts to beginners and initiates is precisely to avoid the advice of those who have only superficial knowledge.
Even more important is to watch out for rumors that are supposed to run behind the scenes of the stock market and in the versions circulated by the media. Most of the time, the information does not proceed and the most busy investors end up losing money by trusting those they shouldn’t.
Look for a reliable source of information since your first investments. Some experienced professional who can guide what is the best solution for your profile and always be careful with the on-call counselors. Financial market experts still say that the beginner must learn to ask the right questions so that the information obtained can help rather than confuse.
Investors who are just starting out have the opportunity to create habits and attitudes that will directly impact their future market returns. Not only are success stories an intrinsic lesson, but mistakes made by predecessors can be valuable lessons for those who do not want to punch the point of the same knife.