- Mental preparation to take risks comes first
Investing in stock markets around the world is always risky. The level of this risk in the market of Bangladesh is much higher than other countries. Because, our market is more rumored than fundamental. In most cases, we see investors investing in the market without any initial idea about the stock market. Because of this they also incur more losses. Before investing in the stock market one must have a preliminary idea about this market. Apart from this, it is important to have a good idea about the company you will invest in. In other words, it is better not to invest in the stock market. Because, in the final analysis, whatever the profit and loss in the stock market is, it is the investor’s own.
- Not investing in a new IPO in the beginning
Over the years, we’ve seen the price of a new stock go up by 5-10 times in a matter of days. This is not a normal trend at all. The regulatory body allows a company to enter the market at a fixed price. In many cases, there are questions about the price. Even then, the IPO is being approved at that price because the financial condition of the company does not support it. Despite this, after coming to the market, it is seen that the price has increased several times. For this reason, the price is not going to be sustainable for a while. So before investing in a new company, its market performance should be reviewed for a while. In this case, investors must remember that new companies do not mean good companies. Besides, it is important to keep in mind that when investing in a new company, the shares that are under the sale ban or lock-in of that company will also be sold in the market after a while.
- Be patient, stay in good shares
The rise and fall of market indices and share prices is a very natural trend. However, most of the time there are unusual ups and downs in our market. The price of all the shares, good and bad, falls abnormally. Additional caution is needed when investing in such markets. Many good stock prices have also fallen below reasonable prices in the current market due to the recession that has been going on for some time. So this is the right time to invest in good stocks. However, in the short run, the issue of profit must be shaken off the head. However, holding shares in the long run is not possible for many investors. My advice is that investors who can’t afford to hold the stock for a little longer should not come to the stock market. In addition, one should never invest in the shares of a company.
- Beware of sudden price increases
It is often seen in our market that the share price of some companies suddenly jumps up without any logical reason. Many investors became interested in investing in those stocks in the hope of quick profits. This is a very wrong decision. Rather, when a company’s share price rises without a specific reason, it should refrain from investing there. As a general rule, an abnormal price increase of a company without a reason means there is some manipulation behind it. It is difficult for ordinary investors to make a profit from the shares that are traded. So if the price goes up, you should not invest in any stock without any research. Investors need to keep in mind that fraudsters are manipulating their interests. One of their strategies is to entice ordinary investors by raising prices.
- The recession is not a debt in the market
Our market has been in a slump for a long time. Many stock prices have plummeted due to the continuous fall. Even so, owning one is still beyond the reach of the average person. It is very difficult to make a profit in a recessionary market. It is difficult to make extra profit by paying interest on the loan. Usually when the market is up, many people invest and make a profit by borrowing. We have many investors who invest all their life savings in the market. As a result, in most cases, they are the ones who suffer the most. Never invest all the money saved in the stock market. Then you need to be more careful when it comes to borrowing. Many people are counting losses by investing in the current market. My advice to them is, if you have a good share in your hand, then maybe you can overcome the loss by waiting patiently.