How To Invest | 7 Things To Avoid Stock Purchase

While many of you will get advice from family and friends, brokers on the "how-to 'invest in stocks, things that should not be doing are lost in information overload. So here are a few "Don 't' s have to consider when investing in stock.

Don 't buy unlisted shares: Bags not authorize transactions with unlisted shares or allow their registered members to deal with them. This is the first rule of the game to follow. Therefore, trade with unquoted shares will not take the security coverage of the stock market authorities and most brokers do not encourage him. To make the transactions you need to know the market prices of a stock. How do you know if the shares are not publicly traded? This means that you are in the dark, even on the performance of their stock and trade in such shares become nightmarish task

Don 't spend all your money at once: Spread your savings, which can never be sure that a particular type of investment will be good all the time. By diversifying, you reduce the risk of loss

Don 't buy shares dormant: Actions in which transactions are made every day or almost every day are called active actions. In a way, it is also an indication that the company in question is doing well and so the risk of investing in a company is less. Actions are not inactive business occurring seven times a year or sometimes even less. These companies offer very attractive prices in order to promote their actions, no one is interested in purchasing. As a novice investor in stocks, you should be aware of these companies and focus only on the actions of some value to you, even if the purchase price is cheaper than these actions

Transactions Don 't with the unregistered brokers: You can see yourself believing tall claims by registered brokers and end up investing in unpopular actions and inactive. News channels, newspapers and major financial websites are most reliable for updates and advice. Search for registered brokers and especially those doing business with your family and friends for a long time

Don 't rush to invest: Research and monitoring of trends in the market takes time and practice, so do not rush to invest without the proper planning, diversification and a lot of money at once. Reduction in prices of a share does not mean you need to buy, also the increase in prices does not mean that 's the best time to sell. Remember, investing in stock. is a gamble

Don 't buy shares in closely-held companies: Companies with less than 7000 shareholders can be classified as businesses closed. Usually, they are less active than ample help companies and tends to be ignored by the masses. Manipulations of the shares are more plausible when the number of shareholders is lower. This increases the risk as a shareholder. They also have a tendency to be unpredictable due to the sudden rise and fall of stock prices