7 secrets of investing money in stocks

Putting funds aside with expectations that they would work for you in the future, that’s what investing money in stocks means. Investing in stocks brings profit, no matter if the market is up or down. Did you know that the biggest profit ever on the stock market came during the Great Depression of 1929 in the USA? It was the famous ‘short’ deal by Jesse Livermore which brought him about 1.4 billion dollars in today’s prices. In this article we share the most precious secrets of sophisticated stock market investors that could be useful for those building an effective investing strategy.

Earn profit in 1 minute
Trade now

Note! Investing in stocks can bring you profit both on a rising and falling market.

1. Begin with setting your priorities

There are several types of investments on the stock market, such as long or short term, more or less risky ones etc. To enter this world, you have to answer the question, what kind of investor you are. Is it terrible for you to live under constant risk of losing your funds, or is it your everyday lifestyle? Are you patient enough? Are you an optimist or a pessimist? Do you take key decisions all by yourself, or do you trust professionals to do it instead? This may seem not so important for a newcomer. But experienced investors name it crucial to define an investment strategy.

2. Consider the risks

Easy to begin, advantageous to continue: why investing with Binomo?

Investing money in stocks is a risky business, that’s common knowledge. What comes profitable for the buyer may be in the red for the seller and vice versa. But it’s not the reason to stay away. There are several categories of investments in accordance with the level of riskiness. As a rule, the more profitable the stock is, especially in the short term, the more it is volatile. Decide what amount of money you can commit painlessly to the risk of waste and don’t put all eggs in one basket, e.g. stay diversified. A patient and cautious investor is sure to get the desired result in the end.

3. Create your strategy of investing money in stocks and keep to it

Be ahead of the market and other traders. Your secret weapon is your personal strategy of investing, that you have thoroughly worked out and that you keep to persistently. Don’t copy other investors, but move your own way, be unpredictable, catch the right moment. Always look for new possibilities, you may find a golden pot where you don’t expect it, e.g. discover some start-up which may look not very promising at first sight but may suddenly become very profitable.  

Cryptocurrencies: what to expect in 2023
2023 is expected to be the year of recovery for the crypto market. Read on to see what to expect in 2023 for cryptocurrencies.
Read more

4. Keep a cool head

The famous analyst and market influencer Dennis Gartman advises: “Be patient with winning trades; be enormously impatient with losing trades.”  This rule is most important for beginning investors who are impatient enough and tend to fix their profit as soon as there is a small rise in their stock rates. Such a policy is not recommended by experienced investors who consider it wise to wait for the right moment to sell stocks and fix the maximum profit.

Start from $10, earn to $1000
Trade now

“Be patient with winning trades; be enormously impatient with losing trades.”

Dennis Gartman

5. Stay up-to date 

Follow general trends, read or watch the world news as well as companies’ news to be informed of any changes that may occur. Stock market is extremely dependent on news and forecasts of various kinds. The comments of politicians and important businessmen influence the market as well as weather or natural disasters, world arena events, forecasts from rating agencies etc. 

6. Start investing money in stocks online

It is not necessary to be a hi-tech professional to start investing in stocks online, a simplest mobile phone with Internet connection will be enough. There are special brokerage companies which provide online investment services. Many banks offer their apps with the function of online investing. You do not even need a great amount of money to start, a few bucks will be enough.

7. By falling we learn to go safely

All great investors were beginners some time ago. They gained experience step-by-step, learning from their mistakes. Those who quit after the first misfortune, left the investing world and were forgotten. The point is you have to go on even if you are getting upsetting results at first. Like in any other business, give investing a second chance and you will certainly be rewarded.

Trading with up to 90% profit
Try now
<span>Like</span>
Share
RELATED ARTICLES
4 min
How to trade using a mountain chart type on Binomo?
4 min
Physical capital
4 min
Is trading a fraud?
4 min
What Does YOLO Mean in Stock Trading and Investing?
4 min
6 main benefits of diversification in investing
4 min
What are stock markets and brokers

Open this page in another app?

Cancel Open