Nice title isn’t it? Why? Ayurveda is a traditional treatment using pure natural resources than chemicals, which have capacity to cure but side effects too. Compare the Ayurvedha with investments. In the world of investments, lots of ‘chemicals’ available to cure the investment lose
but, all of them might have deep side effects. A young investor, who is entering to the investment world, better to follow the Ayurveda path to cure money lose because, it will cure the lose completely but slowly. The moral of this is, investment always required time and patience to grow your money to 100%.Any new direct stock investor should understand and follow some essential steps to reach to success. Below are some guidelines for these investors to follow to be a successful investor.1. Before investing, understand what you are going to do like traveling to some were. If you travel a lot, you would have an exact idea about the places, maps, transportation facilities etc. In the same way, before start investing, an investor should have well knowledge about the investment instruments were he interested to park money. If you are a stock investor, you should start learn from the beginning such as, what is stocks, what is stock exchange, how it is works etc…
2. Have good understanding on the investment process. If you are planning to invest online, start gathering all the necessary information to get a good online account. contact multiple vendors and write down the advantages and disadvantages of each account has, and analyze the same to find the best one among them. Here is your help for the same.
3. Understand the business in its maximum, before investing to it. Identify is it inside your circle of competence boundary. Once you feels good with the service, that would be a best sign for you to go ahead. Collect maximum information about the company from their websites, stock exchange data bases or any other finance websites freely available in the net.
4. Once if you found an excellent company, always invest for log terms instead of short term. Day trading is just like chemical medicines, it will give you profit in a single shot but, it will cost you with another shot. Invest like using Ayurveda, have patience and provide time to your investment grow to its maximum.5. If you are not able to understand the direct equity investing methods or not having time to do most required research before any investments, select parallel investing instruments like mutual fund, index fund or Exchange Traded Fund etc but using systematic investment methods to buffer possible money loses.
6. Do not follow public. Do not consider research reports or tips from self acting financial gurus and analysts, to make your investment decisions. Instead, do your own research to find a business with completely meeting your own selection criteria. Remember, nobody in this world became wealthy through blindly flowing public and tips. Instead, all of them have a story of lose. Behind each tips and research reports, there will be a hidden, selfish interest.
7. Understand nobody share the idea of a real profitable investments to others. Instead, he himself invest to get maximum profit. Recommendations can be done by anybody when they are not losing any money. Instead, ask to the person, who is recommending stocks or investments, about how much he had invested on the recommend stocks.8. Read all the available best books about the practices of legend investors. This will motivate you and lead you by good ideas to find out your own best way to have good start.9. Always deal with authorized people or offices only. This will enable you to track your transactions as well as service misbehaviors.10. Always deal with small amount if you are entering as a newbie to any investment products. Practical knowledge always precedes than any other knowledge. Lose of small amount will give you better awareness about your weak points to improve enormously. Start slowly till you are capable to do big deals.These are the most basic but very essential things a newbie should know before start investing as his own. Patience and experience will make anyone as a good investor. Be your own Bose and take wise actions.If you feel that I have missed any points, feel free to inform me through comments.