When we listen the word stock market, then we think that it is risky. We believe that it has chance of growing too high, but it is risky. We never try it by ourselves but just see others and believe that it is risky and we should not take part in that. We fear of losing money in the market. Being true, this is the part of the stock market. But there are many tricks to reduce the chances of that loss and get profits from the market. But I want to be true, that if you don’t take risk then definitely your profit will be less. So don’t expect huge profits without taking risks. But up to a limit you can try to reduce loss and increase your profit from the market. But for this, you need to be firm and then start to invest.
If you are ready to take a little risk then try these tricks. But I say that you should not look at these as your boundaries from trying something. But these are just tips to save your money and earn little profits. Once you are confident, then you can try to take little risk and earn more profits. This article is just to make you start investing and then automatically you will try new things to get more profit. This is not wrong but you just need to be sure that you are not taking any decision in greed. You need to think over all the decisions. Never, ever copy others. think yourself and then take the decisions. So lets start this article and it will tell you that how can invest in the market without losing money. So take a deep breathe and now lets start this amazing article. If you will like this blog then don’t forget to subscribe to my blog Geniusmehra.com for more such blogs.
- Keep money in stock for longer time
This is one of the best and also most followed tip to never lose money in the market. You need to keep patience if you dealing in the stock market. Just leave thinking that once you buy any stock. When the price of stock will rise high, then you will sold them instantly. Just leave this. And if you think that one stock which you have bought is not doing well, so sold it. You didn’t get profit but you did this to reduce your loss. This mentality is dangerous. Just keep patience as if you never want to sold the stock. If the stock is going down just wait for it to rise. In most cases, the prices of the stocks are regained by them after sometime. As the prices of different commodities change periodically, in the same way under performing stocks also perform well after sometime.
Once Warren Buffet bought 3 stocks in the childhood. It was the first he bought it. He bought each for $38. Then price of the stock fell and he became nervous, as he was a kid. Then as the prices of the stock recovered he instantly sold his stocks. Then after a few months, the price went to $250 each stock. He was extremely sad, but this thing taught him a lesson to be keep patience. So learn from him and be patient. But I really don’t say to keep your eyes closed even if him some stock is falling dramatically. That time check that whats the reason. If there is danger of company going bankrupt, then clear your stock, otherwise keep patience or buy even more stock for less price, if you think that the company could work well again to raise the prices of their stock.
- Target growing companies or start ups
This may seem risky to you but it is very beneficial. You need to target companies that are growing rapidly. I don’t mean price of stock, but I mean, their growth. You need to see how that company works, is there any chances of growth. You need to pick a company which has not registered in the stock market. You may have to wait for it to register. Then buy stock at cheap prices, and if your choice is good then definitely you will become richer and you will not lose any money. But this is not easy as you need to do a lot of research and then use your intellect. You should read different magazines and books of this kind. Search on the internet for the company, then take a decision. You should try to give your hundred percent to get huge profits with no loss.
Suppose you knew of Facebook when it had not registered in stock market. You would have bought for around $35 to $40. And now the price has grown so much that you would have got so much money. Just take risks. Suppose if you had invested in Amazon in the early days, how lucky would you have been? But here don’t forget the tip 1, keep patience. When Facebook registered then quickly it lost the price of the stock but the people who believed in the company that day are so lucky. So try to find a great company, and may be you become the next billionaire investor who earned everything from the stock market. But don’t try to copy what others are doing, do what you think. Wait for the right time to do what you want. Best results arise from efforts at right time.
- Invest on companies working on future
You should aim at companies which are going to change the world. Just don’t look at the stats for the price of any stock but do the thorough study of what they do. If you think that what they are doing is not very beneficial today, but tomorrow needs it very much. Then don’t hesitate to invest money in the company. As the need of the company will increase so their sales will also increase, then their profits will also increase, then the stock price will grow and then you make a lot of money with safety. The may not increase immediately, or it may seem to be going down, but at the correct time the stock price will rise once again. When it will rise, it will surely reach new heights and you will also start getting profits from you choice of company changing future.
Suppose in the 2000 you invested in Google because it was fulfilling the requirements of many people. It was not a very big company. It was not generating a very huge revenue, but what it does what investing in the future. So if you would have invested in it at that time? Just imagine the maximum stock that you can buy at that time, and their value today. In 1980’s when Microsoft went public, the value at that time and today. You need to invest in future, not yesterday. Just think of future and then take all the steps. Never wish to very high profits immediately from the market because it may be risky. You may lose all your money at once. Invest in future but not in your loss. You need to study about the future also. I mean reading analysis by specialists of that particular field.
- Don’t encash regularly
Try to minimize taking money out of stocks. Each time you take out your money you need to pay tax. The government wants tax but not when your money remains in market. As soon as you sell your stocks then you need to pay taxes on the money which you have earned in this way. The first step becomes more important after this point. You need to know that in your situation you should invest money that is extra with you. The second thing is that if you have money in hand then you will waste it. If you have made good profits, you will try to enjoy your life. But this is not the moment. You can do this the next day or I should say with other sources. Let your money be here only for greater profits. Otherwise if you keep on using money, you may go bankrupt.
Do you know that how much tax do the top billionaires like, Bill Gates, Jeff Bezoz, Mark Zuckerburg, Warren Buffet, or Elon Musk pay? Well, I cant tell you exact figures because I myself don’t know. But Warren Buffet once said that his secretary pays more tax than him. These billionaires use the money of their corporate. You may be knowing that Mark Zuckerburg takes only $I salary from Facebook. He owns a private jet, and a big house. So can that $1 dollar get this? He even cant pay the cost petrol with this. He takes money from the company. You may be knowing that Facebook spends millions of dollars yearly on his and his family’s security. He does not take salary to not pay tax. Therefore, you also use strategies to not pay or pay less tax. Use mind to save money.
Do you know that this is one of the reasons that why very few entrepreneurs, businessmen go bankrupt? They even don’t have money in their hands, so they cant use it. If they cant use it, they cant go bankrupt. But bankruptcy is very common to celebrities in other sectors. You may have heard many times that a very popular and rich film star, athlete has gone bankrupt. They earn a lot but they spend in the same rate. And when they cant earn they go bankrupt. So stock is not your weakness, it is your power. The celebrities earn equal to many billionaires, or more (if we leave stocks) but their desire of spending makes it a trap for them. A great athlete cant expect the same amount of money in old age also. So he needs to save but he does not, so he goes bankrupt.
- Invest in companies giving dividends
Many companies, or most of the companies, pay dividends to their stock holders. Dividends is given in form of money or extra stocks. It is given according to the number of stocks you own. This is a great way to minimize risk of loss in the market. Even if your money in the stock slips, you can recover it here. You can reinvest that money in the same company, or in different company, or you can do whatever you want. But if the selling price of your stock goes a little down, but you get more money in the dividends, then it is not very wrong deal to be done. You can start searching for now to start your investment. Dividends, actually, are a way to attract investors, so check that which is the best. You need to invest this money wisely, because this can change your profit into loss.
This is one of the ways by which some people become so rich, and some people remain average investors. If you are investing in a company that pays dividends so that you can spend that money, you will be average investor. But if you are investing so that you reinvest more money then you can be a great investor. I don’t remember last time, when Warren Buffet encashed his money (else then doing charity) or enjoyed the dividends by doing parties. He only reinvested. Now he is giving everything to charity. So do what you want with your stock or dividends, but remember future is not known. I know that this thing can be very difficult but reinvestment of dividends is a must to grow rich. Companies pay dividends because they attract you to spend money from that by keeping stock unsold. They try to get more investors.
- Invest on companies facing problems
I don’t mean to invest in companies assured of going bankrupt. I mean, facing problem and which are having chances of standing up again. Like Facebook, it is facing extreme problems in this time. Therefore, the stock price also went down. If at that time, you invested your money there, then you could get huge profits in future. It is because the company is facing bad day, but a bad day does not mean that they cant stand up once again. Well, you need to judge that can they ever stand up again or not. This is just a strategy to get the stocks at lower price, which can rise high. This is also the strategy that helped Warren Buffet to become such a rich person. He has not been at this position within one day, or by following other people. He did everything after thinking a lot
Do you remember the market collapse in the US. When others were clearing stocks he bought more and more. The price was extremely cheap. Then when the market recovered, he got huge profits from those stocks. So remember the point 1 at all the time. When others were clearing the stock, he was storing them. He has said” when others are greedy, be afraid, when others are afraid then be greedy”. he meant what he did. Others were scared of losing money, but he was greedy for making money. He could have thought that everyone is doing something, it may be correct. But he has done his analysis, and decided to do what he wants. Actually, those people were making the market even more disturbed by selling stock, but he did what he analysed from his research. He didn’t take orthodox steps to be here.
- Invest your money in many stock
If you are reading this article then you want to protect your money in the stock market. You don’t aim to make huge profits. So my advice for you is to distribute your money. I don’t mean to give it others, but I mean, invest on many stocks. It will decrease the amount of loss, if you are going to face it. This is not a great way to invest in the market to earn huge profits, but this is for safety. This is an awesome way of protecting money, and the best part is that you can even earn huge sums of profits from this technique also. Many people use this so that they don’t face loss. It is because if a particular company faces any loss, it does not mean that all the companies will do face loss because one is facing.
Your total amount of money may not drown in the market, but I say that you should not expect huge profits. You can earn but don’t expect. Suppose one stock is doing extremely well, while the other stock goes down. And others remain at their average. I again say, you can earn huge profits but don’t expect it. If you are thinking of huge profits then try to invest your money in one stock, but not in many. You may face early loss but remember point number 1. Then surely in the long run you will get profits from your investment in that company. This is not rocket Science, but it is simple Mathematics, that can help you to understand the way to profits. Many means less variations. Less means more variations. Variations are inversely proportional to number of different stocks. Just analyze what you want.n’t invest on companies which don’t care for customers
If you are thinking to invest your money in a company that is getting huge profits, but does not care for the customers, then you can lose your money. Just check the working of the company, and if the company works for profits only, but not for customers then don’t invest in that company. It is because they may be having a good today, but their tomorrow is very dark. It is because customers don’t want them, neither they want to help their customers. They are just playing for a little time. If you think that why they didn’t bankrupt earlier, then their leader may have changed. In the next paragraph, I’ll tell you a story of this. So invest in companies which invest in customer happiness, a happy customer is key to success. Without happy and fulfilled customers we cant develop.
Do you know that earlier Amazon was not generating huge profits. Even the investors were confused that were they right in buying stock of Amazon? They wanted profits but Jeff asked them to wait, then again he asked them to wait. He was having no aim of making profits, but he was only aiming to satisfy his customers. He knew that if their customers will be happy, they will become successful and generate profits themselves. So we know how big is Amazon and it is very profitable also. If he would have attempted to make early profits after listening to investors, then Amazon would have gone bankruptcy, many years ago. But even today it is in the competition because of Jeff. Once they sold Harry Potter new published book, for loss. Entire company disliked it, but Jeff did it for customer satisfaction to make the customers satisfied, happy and loyal.
- Don’t invest on companies that don’t innovate
To get profit without loss you need to do more work than anyone else. If you do as much work as others do, then you cant rise above them. You need to see the History of the company. How they started, what they did earlier, now what are they doing, are they innovating? If you get the answers and you think that the company works well, then you should invest in that company. Just don’t look at the stats of stock price but get a brief history of the company and its working. A non-innovating company may be having high stock price but it will soon come down because time is changing and if you don’t change with time you will be destroyed. History has seen this with many companies. But you also need to see who is the leader of the company. I will tell you why.
You may be remembering Yahoo. It was a big company but they didn’t change and so they have been destroyed. If they would have changed then they might be at Google’s place. They just didn’t change themselves, so time changed them with Google. So be ready to innovate. And leader is also necessary, as I said before. Do you remember what happened when Bill Gates stepped down as the CEO of Microsoft. Steve Ballmer preceded him. The company was at top at that time but bad leadership turned that company into a declining company. He was also not innovating. He even ignored teh power of internet. So that was the biggest mistake. If they would have bought Google, and allowed it to work independently, then today their profits would have been so high. But Ballmer ignored many things. Now Satya Nadella has saved Microsoft.
- Start investment as low as possible
This article is mostly for new comers who feel danger to come to stock market. Therefore, this tip is very important. Start your investment as low as possible. This is not because for safety of not losing money. But this is for learning investment. This will help you to taste the stock market, and what it means to be there. This is not gambling so you need to learn how to invest. You can not invest on any company. You need to choose. But theoretically it is totally different with practical. So this is for you learn investment, and also to learn to keep patience. These things are easy to do while thinking. But when you do it, it is totally different thing. This is very difficult task but you need to believe that you can. But don’t over react on the results. Just be calm and patient.
Do you know that Warren Buffet learnt investment in the same way. I told you that he invested in a stock at childhood. It was not that he was born with these skills. His father worked in a stock exchange firm, but he need to learn it himself, by small losses. So to get small loss for a big lesson is not a very bad deal. I hope you understand the value of learning. Don’t always try to make money but try to learn to make money and if you liked this blog and want more knowledge on this issue then subscribe to my blog Geniusmehra.com for more such articles. Please share this with your friends also. Tell me which is the most important point according to you. Tell on which topic you want next blog.f