How to become a Successful Investor?

How to become a Successful Investor?

SHARE
successful investor

Get Success in Share Trading : Become a Successful Investor

To be a successful investor by trading in shares there are definite steps to take. Following texts can help you to succeed in stock markets..

Look for company financial data

Before investing in company shares on the stock market, you should be aware that all publicly traded companies must provide access to investors with company financial data. The data is generally available from the company so if you are considering buying shares from a company, then get access to this financial information and make happy yourself that the company is in a good financial state before owning the shares of the company with your money.

Key aspects to Look in a Company’s Financial information

While researching the details of a company, then take a look at its financial position of atleast two to three years into the past. There is no need to go back further than this but if you go back less, there may be significant trends in the finances that you will fail to spot. Take exceptional note of the quarterly statements and the revenue and earnings per share of the company.

Figures tell the Story of a Company

Try to identify trends in the figures. While there is no guarantee of what might happen In the future of the figures, it is unquestionable that an upward trend in revenue and profits will be a positive sign to look out for. In simple words, a company having steady growth for past 2 to 3 years should have a positive growth in the future, until or unless some major changes occur.

After you are satisfied with the financials of the company and that the projection of making good profits into the future are favourable you will be in a situation to consider putting money into the share.

What Kind of Shares will give more returns? (Growth or Dividend)

It is an continuing debate over whether it’s preferable to buy shares that will grow in value, or shares that pay good dividends. The answer to this question should always lie with the individual investor. It is always suggested to avoid chasing dividends. We refer to the practice of certain investors of buying a share just before a dividend is expected to be announced. Please note that the price of the share will already have taken the dividend into account so you will be paying for it in any case.

Recommended Read :
SHARE

10 COMMENTS

  1. Being an investor is good, till you know everything about it. Investing money here and there will not make you an investor . Investing money in a right way with interest, will make you a great investor. The article has greatly described the needs to become a good investor. Looking forward for more articles on this.

  2. Everyone wants to become an investor but the challenge of investing without much knowledge is making losses. So before you decide to invest in a company, try to find out all the necessary details so that your money does not go to unreliable hands. At the same, the truth is in most cases people do not strike the hot spot right in the beginning, may be a few failures will give you experience. So start off with smaller amounts.

  3. Investing your hard earned money is and should be an important decision. You should choose very carefully in whom and how much to invest. You should research really well before investing and should not take hasty decisions. There should be least scope of committing any mistake. Choose wise and be a happy investor!

  4. Many of us love to invest in the share market but refrain from doing so fearing to the fact that we may face a heavy loss. Many of us who have gained a good amount of profit in the initial phase have found losses in a long run. The reason behind the loss is the lack of study of financial data of the company in which we are investing. This article, in simple words explains how to carefully financial data and be successful in investing in shares.

  5. Investing is the most sought after business these days. Everyone wants to have the ‘Golden Hen’ which gives golden eggs. The financial markets across the globe are booming and everyone tries out their luck in it to earn more money. However, investment is not merely based on luck, a successful investor has all the technical knowledge and judgement in his arsenal. To become a successful investor, one should have proper technical knowledge of the markets, getting hands-on experience under an experienced investor can be a plus point. Studying the financial data of companies and designing your portfolio can lead you to success. A proper balance of Derivatives and other securities can help to reduce risk.

  6. It’s highly impossible to get something easily just like being an investor you must well know about shares and stocks. Anyone can become an investor by investing some amount of money but getting more profit is more important to be a good investor Once by reading an article a beginner gets some idea such a good article.

  7. Oh my gosh it seems like such a complicated and difficult decision which shares to invest in.
    I’ve never had shared. My mother liked to play the stock market, but she was a risk taker. But they say – you have to take risks to make money.
    At least this article shows a better way of choosing how to purchase shares – a little back ground knowledge goes a long way in making money!

  8. To be a successful investor first you need to have enough money to invest and second make a good choice of the business you want to grow with. Is better if you invest in one company rather than several much smaller which are not going to return your money the way you want or need.

  9. Eventhough the article has provided with some essential pointers for becoming a successful investor, I think there could be so much more of it.Agreed that such a vast subject cant be covered under an article or so , I actually think that a case study or an example would have just brightened up the article.Well so much so said about article , becoming a successful investor actually depends on one’s own investment objectives and research along with core observation of the markets.

  10. A successful investor is not born but made. Being successful in the share market involves a lot of knowledge of the share market plus the experience. Like all success stories the investor at some point must have fallen. So falling and rising is just a part of growing up to become a successful investor.

Comments are closed.