Don't borrow money to use for stock market investment. On the stock exchange, borrowed money is known as either gearing or leverage. It is typically used either by companies (to help them finance growth), investment banks and hedge funds (to help juice their returns) or very aggressive traders. There are many spread betting (information here), options trading and day trading strategies that use borrowed money to enhance returns, but it also has a very profound impact on the risks being taken with each trade.
You can have the best strategy in the world, but if you can’t stay disciplined and keep your emotions in check, you risk losing profit. The first thing to note is that it’s human nature to show and react with emotion, especially when there’s money on the line. Fear, greed, and ambition are three of the most prevalent and potentially dangerous emotions. Fortunately, we have listed the top psychology tips to help you keep a level head.
Whatever happens on a stock exchange and no matter how much influence computers, algorithms and high frequency trading may have, human nature will always have an important role to play. Typically, human nature becomes more important when momentum is changing and there is excitement or panic in the air. It would seem wise to try and understand this mass psychology or group thinking which is often referred to by investors as the madness of crowds.
Don't borrow money to use for stock market investment. On the stock exchange, borrowed money is known as either gearing or leverage. It is typically used either by companies (to help them finance growth), investment banks and hedge funds (to help juice their returns) or very aggressive traders. There are many spread betting (information here), options trading and day trading strategies that use borrowed money to enhance returns, but it also has a very profound impact on the risks being taken with each trade.
What are your financial goals for 10, 15, or 20 or more years down the line, and how do you plan on getting there? What is your level of risk tolerance, and what sort of investment approach will you take (value investing, dividend investing, or some combination of multiple strategies)? As you consciously outline your financial goals and the type of investor you want to be, you can experience success as a disciplined investor in the long run and stay on track with your plans.
7. Don’t concentrate on the money – This may sound counterintuitive, but it makes good sense. Having money at the forefront of your mind could make you do reckless things, like taking tiny profits in fear of losing what you’ve already won, or jumping straight in so you don’t miss a move. Instead, focus on sticking to your strategy and let your strategy focus on making you money.
Businesses you don't understand -- Here's a great rule of thumb that works for beginners and expert investors alike. If you can't clearly explain what a company does and how it makes money in a sentence or two, don't invest in it. There are literally thousands of publicly traded companies to choose from, and you should be able to find plenty of opportunities in easy-to-understand businesses.

In terms of the beginning investor, the mutual fund fees are actually an advantage relative to the commissions on stocks. The reason for this is that the fees are the same, regardless of the amount you invest. Therefore, as long as you meet the minimum requirement to open an account, you can invest as little as $50 or $100 per month in a mutual fund. The term for this is called dollar cost averaging (DCA), and it can be a great way to start investing.
AT&T (NYSE:T) -- AT&T is one of the leading players in wireless communications and has built itself quite a media presence with acquisitions of DirecTV and Time Warner in recent years. The upcoming wide rollout of 5G technology should be a nice tailwind for years to come, and the company has a fantastic track record when it comes to dividends. AT&T pays a dividend that's well above the industry average, and it has increased the payout for 34 consecutive years.
Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) -- As a beginning investor, it wouldn't be surprising if you haven't heard the name Alphabet before, but it's likely you've heard of the company's main subsidiary, Google. As the dominant leader in internet search, Google has an effective duopoly on internet advertising, along with Facebook. Its massive stockpile of consumer data makes its ads extremely effective, and it's tough to imagine any competitor stealing any significant percentage of the market. And Google has the second-most-valuable brand name in the entire world, with an estimated value of more than $130 billion, according to Forbes. The fact that Google's brand has become synonymous with internet search and several other functions gives tremendous pricing power when it comes to selling ads.
Why I’m buying: Spell out what you find attractive about the company and the opportunity you see for the future. What are your expectations? What metrics matter most and what milestones will you use to judge the company’s progress? Catalog the potential pitfalls and mark which ones would be game-changers and which would be signs of a temporary setback.
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