| Financial Security is the concern for everyone, not | | | | and selecting those stocks which will provide stable |
| only to fulfil the needs and desires in present, but | | | | returns over a period of time. |
| also to plan the retirement. Investment is one of the | | | | Plan long term investments: |
| best solutions to make yourself financially secure and | | | | Investment in stocks for short term is of no use. |
| add that extra income. But investing your hard | | | | Stocks are generally the portions of the company |
| earned money is not that easy and requires a proper | | | | which you can buy and later on sell as per your wish. |
| planning before you actually start investing. | | | | The returns in stocks are generally calculated as |
| Investing money in the stocks requires some proper | | | | earnings per share based on the profit accumulated |
| research and plan in order to gain better returns. | | | | by the company. Profit generation is not a task which |
| Planning along with the inconsistent stock market, is | | | | occurs overnight and can be achieved only over a |
| the factor responsible to turn your hard earned | | | | period of time. |
| money into positive returns or the reason behind | | | | Long term investment is also necessary due to the |
| losing your money in the stocks. Thus, a well planned | | | | unstable nature of the stock market. The value of |
| investment chart always highlights the following | | | | stock cannot be predicted over a short term, it |
| factors which help in stabilising the profits and the | | | | requires a long term to analyses its performance. |
| losses. | | | | Resist stock speculations: |
| Diversify Investments: | | | | Resisting stock speculation is equally important as |
| Diversification is very important. When it comes to | | | | stock diversification. People normally tend to buy |
| investing in stocks, it is important to understand that | | | | stocks getting speculated by the present returns or |
| not all the stocks perform well neither do they | | | | the current status of the company without analysis |
| provide consistent returns over time. Keeping money | | | | the facts. It is always necessary to analyse the |
| invested in one particular stock is not only risk over a | | | | company's past and the present performance and |
| period of time but it also affects the returns in the | | | | consider the future missions before deciding on to |
| short run as well. Thus it is important to diversify | | | | the stocks you desire to buy. |
| your portfolio to maximise your returns. | | | | It is also necessary to study the stocks sector wise |
| There may be stocks in various sectors performing | | | | and select those which will show its consistent |
| well compared to the stocks in some other sectors. | | | | performance even during the downturn of the stock |
| There are some shares like IRA which also provide | | | | market. e.g. food and beverages sector, blue-chip |
| tax - saving benefits along with good returns. Thus it | | | | sector, etc. |
| is necessary to study how the various stocks | | | | Smart investment is the secret behind the profits |
| behave and the returns they provide in specified time | | | | earned from stocks and to invest smartly all you |
| period. | | | | need to do is diversify investment across various |
| Also due consideration shall be given to the company | | | | market sectors and asset classes, keep invested in |
| holding these stocks, there may be stocks of one | | | | stocks for longer duration and carefully select the |
| company outperforming than others in the same | | | | stocks. |
| sector. Diversification implies studying all these factors | | | | |