The ten rules that stock market investors must follow !

Studying the stock market enough can help you make a profit, but simply thinking about making money in the stock market is not enough. To achieve this, there needs to be a sufficient amount of patience and research.

Only patience and research are not enough, you need to have a good understanding of the various activities in the stock market. Daily fluctuations in the stock market can mislead even the most experienced people, so it's important to have a good understanding of the market and stay calm and patient.

When it comes to buying, holding or selling shares, there are various experiences that investors follow. Success in the stock market generally requires careful analysis of the various market trends based on the investor's emotions and attitudes. Although there is no certain formula for success in the stock market, paying attention to some key factors can play a helpful role.

   1.   Making Decisions Based on Behavioral Science

Most decisions made by common people are influenced by behavioral science. Even though some people may rely on their own instincts, opinions of friends, and family, they still tend to make decisions based on what they have learned from their past experiences in the stock market. Many people believe that they made good decisions in the past by buying shares, and so they also tend to buy shares in the future. However, this decision may not always turn out to be advantageous and could result in self-harm. Therefore, it is important to make informed decisions based on research and analysis of behavioral science.

    2.   Making informed decisions in investing in shares

It is important to conduct appropriate research and analysis before investing in shares. However, many people only consider the company's name when investing. This approach can be harmful in the long run as the share market can be unpredictable. Therefore, it is important to conduct research and make informed decisions based on thorough analysis, as this will lead to a more successful development of your investments.

    3.   Focusing only on one area or business

This is considered an important point by successful entrepreneurs. It is advisable to focus on a specific company or related business rather than diversifying into unrelated areas. Doing business with full understanding is also important. The meaning of the second part is, before investing in a company, it is necessary to know what kind of business the company is engaged in. It is also important to know the profit margin in the business.

    4.   Timing the Investment based on Predictions

Making predictions about the stock market's high or low points and timing investments accordingly is a dangerous strategy according to market experts. It's not possible to accurately predict the exact price of a stock, even for famous investors. Timing the market can only be done with a lot of risk and guesswork.

    5.   The importance of a well-planned investment strategy

Having a well-planned investment strategy is crucial to minimize the impact of market ups and downs. Even a small mistake can lead to a significant loss of investment. Large returns can only be achieved by investing in a clear and well-planned investment strategy. If a well-structured investment strategy is not in place, the market's ups and downs may result in decisions that can lead to significant losses.

    6.    Investment decisions based on emotions can be dangerous

Many investors let their emotions control their investment decisions, leading to big losses in the market. It is crucial for investors to control their main emotions such as fear, anxiety, or greed. The desire to make quick money in the stock market by being greedy or being afraid to lose money in a bear market can lead to poor investment decisions. Hence, it is important for investors to be disciplined and alert.

    7.   Diversification of Portfolio

To achieve good returns with minimum risk, companies and investors in different sectors use portfolio diversification to reduce risk. Diversification helps to reduce risk by spreading investments across different assets.

    8.   Realistic Expectations

Having unrealistic expectations from your investments is not always wrong but it is not good either. Everyone wants to make a profit from their investments. Some people invest for a long-term goal, while others invest for a short-term gain. However, expectations must always be realistic. Companies and the overall stock market should be evaluated based on realistic analysis for setting expectations for investments.

    9.    Only invest the saved money in the stock market

Although you may be tempted to invest large amounts of money in the stock market in the hope of making a quick profit, this could put your financial situation at risk if things go wrong. Therefore, it is advisable to only invest the saved money in the stock market. This way, you will not have to worry about losing money and will be able to focus on the relevant matters related to the stock market.

    10.                Constantly monitor your portfolio

After investing, it is important to stay informed about the current state of your portfolio. Global events can have an impact on the stock market and it is important to keep a close eye on your investments. For this reason, it is advisable to constantly monitor your portfolio, make necessary adjustments based on your goals, and review it regularly.