What if you are not familiar with stocks? Private investor Sergey Kulev talked about the principles that must be followed to avoid losses.

Those who try to understand the stock market independently will make the same mistake at first. To avoid this, we asked a private investor, Sergei Kulev, what should those who have just invested or are about to enter the stock market do.

Before, Sergey has shared his investment strategy, and now he introduces ten basic techniques for novices. it’s here.

Train your emotions

They are the enemy of any investor. In my opinion, the ability to resist impulsive decision-making is at least 70% successful. Try not to check stock prices every minute. If your investment ideas do not go according to plan and the value of the stock drops, please weigh the pros and cons first. Perhaps this is not a reason to give up everything and rush to sell loss-making securities. The price may come back and keep growing but without you. If you are a long-term investor, you must be able to withstand a long-term decline in security prices.

Business

You don’t have to be a paper investor only. Ask yourself: Why did you come to the stock market? What is your main goal? One of the answers is definitely: make money. Therefore, you should not postpone actual investment for a long time. First, you can create a simulated portfolio for practice, but you will know nothing before trying to trade a real account.

Forget about an amazing income

Advertisements on the Internet promise you hundreds of percentage points countless times a year, which is meaningless. I often hear phrases such as “This document should grow by 50% in the new year” or “I will invest 50,000 rubles. I will become a millionaire in a year.” Newcomers invested money without a real understanding of the goods they were buying, and the prices were too high. In all cases, it ended tragically: people lost money.

Be prepared for risks and losses.

Especially if you still intend to get a profit margin of hundreds of%. Do you want to earn a lot? There is no doubt that the derivatives market provides such an opportunity. But be prepared for the fact that the potential loss is also high. Risking rubles and winning hundreds of thousands of rupees at the same time is a utopia. If you succeed in this day, then you will be lucky and unlikely to become a model.

If you are not prepared to take greater risks, please choose more conservative papers. They will have no space income, but they are several times less likely to suffer huge losses or even lose money. Take the risks you can take. If everything does not go according to plan, you must make a clear decision about what losses you are prepared to accept and move on.

Forget about robots and analysts.

There is no magic pill. And general business methods. The market cannot provide accurate statistics, but there are real people behind it. In each specific case, you need to find a separate solution. Do you know the difference between an experienced investor and an analyst? Not only can the former find interesting deals, but they are also prepared to take the real risk of incurring monetary losses. Analysts and Robo-advisors are not responsible for their suggestions.

Note

No matter which way you choose: investors or merchants, you can find your place in the market. In other words, you don’t need to invest in everything. It is unrealistic to cover all financial instruments. Determine what your goals are and what you need for it. Consider what you know best, the tools you can best trade, and then deal with them.

Develop your strategy

Develop your view of the market. Everyone has a different view of the market. Different methods and methods from experienced investors can be observed. But it is not worth copying other people’s technology. No one can transfer 100% of their experience to you. In any case, you may not understand it. Therefore, you must fill your potholes.

Think with your head

Just listen to your opinions. No need to follow the crowd. If everyone around says that you need to buy or sell, but you have different opinions, please analyze the situation yourself. Who knows, maybe you are right? However, by trusting everyone’s opinions and following everyone blindly, you may find yourself bitten by your elbow and repeat: “Well, I told you, I told you…” But it’s too late.

Diversification

But be moderate. It is best not to buy one or two papers with all the money.

Face difficulties

You will need long and hard work. If you think that after completing some short courses, you will
immediately start making a lot of money in the stock market.