How To Be A Smart Investor ?

In an always changing market like shares, a smart investor follows up with everyday changes and improves his strategy with every major market change.

The Bombay Stock Exchange (BSE) is massive. This Indian stock exchange houses the highest number of listed companies in the world. Estimated 5689 companies and growing. Compare that to the National Stock Exchange (NSE) of India which houses just around 1750 companies.

So with over 6000 companies listed, how do you know the ones that actually make sense? The stock exchanges can mean a lot of noise, but the smart investor knows how to make sense of the numbers and come out on top with reasonable profits. Smart investors look for value in their purchase and plan each step rationally.

Here are some qualities that separate an investor from a smart investor :

A dedicated learner.

They don’t get daunted by losses or overwhelmed by profits. The stock market is a vast subject and requires immense dedication, focus, and innovation to come out on top. A smart investor is ready to donate the time and space to keep learning and improving.

Patience.

Patience is the virtue that carries us forward, and in case of the stock market, patience is a requisite for success. Understanding when to buy stocks and when to hold onto shares is a desired skill among investors. Investors get tempted very easily when the prices are very high and want to cash in on the stocks as soon as possible. A smart investor will take his time, be patient in his decisions and understand the future forecasts of the market before making his move.

Investment advisor and Relationship manager.

An investor can be the wolf of the market but it is still hard to fathom all the internal workings of a stock exchange. Healthy relationships help forward your cause to the public. Maintaining positive relationships with investment advisors and relationships managers and following them improves your understanding of the market. Not to mention, they have a deeper knowledge of a listed company. They can provide you with insights that you might miss out on the news and other sources.

Stock Recommendations.

Stock recommendations are a part of the noise in the market. With over 5000 plus companies listed, the stock exchanges can be a pandemonium. Stock recommendations by individuals might seem tempting but most of them are a promotional scheme to get the amateur investors into buying stocks. A smart investor doesn’t care for recommendations.

 Research and testing.

Self-help is the best help you can get. A smart and experienced investor has stood the test of time and done his own research on how the market works. Not fearful of risks, he has spent the time to study the market and research on trends and tested his own trading strategies. Being the tactician himself, the smarter investor doesn’t get fazed by the volatility of the market. He doesn’t panic when things go wrong and move on to make new plans for a better outcome. Investors like these always have a plan for any situation because they have planned their trading strategies.

Setting Financial Goals.

They are prolific in their investment management. He is thinking both long-term and short-term. A smart investor keeps close tabs on all kinds of stocks and invests wisely to achieve their financial goals for each term. They invest in short-term stocks as well and sell these stocks quickly to make profits. They also invest in large bonds that give them returns in the future.

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