ARTICLES MANIAC ? How To Successfully Invest Into Stocks

To achieve success in investing, you first need to set the kind of goals you wish to achieve. Then you set out to achieve your goals leading to success. First you need to understand your requirements and risk tolerance. Are you a low risk or medium risk or high risk investor?

Safe trader ? A low risk investor?s goal would be to protect an investment capital as well as generating modest returns on them. They will invest into fixed income securities and defensive shares.

Medium risk trader ? The medium risk trader may partly invest in risk-free heavens such as bonds, fixed deposits and the rest in high risk assets such as growth shares.

High-risk investor ? Risky investors don?t invest in low return securities such as bonds, bank deposits but they purchase in quality stocks wishing to achieve high returns.

When investing into stocks, you need to understand the sector and the business you?re investing into. If you are a low risk investor, you would want to buy into the consumption or pharmaceutical sectors which are safe sectors because even in a recession, people will continue to buy daily use items and medicines too.

Medium risk investors might opt for a few defensive market sectors such as consumption as well as pharmaceuticals and may also make investments in more risky industries such as autos along with banking institutions that are extremely unpredictable. Do a good investment planning in which you?re nicely balanced with your stock portfolio by spreading out your risk.

High risk investors don?t go for defensive stocks but enter into high growth names like banking, auto and oil and gas kind of sectors. These sectors have high risk but equally high rewarding as well. So if you have the knowledge to take risks, you can work your way around and make a lot of money in stocks. All you need to do is to choose your risk appetite and invest wisely.

If you liked my article, you will also like: share market tips. You might want to see this one too ? how to open ppf account

Source: http://articles-maniac.tk/how-to-successfully-invest-into-stocks/finance/stock-market/

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