Your role as an investor doesn’t end with your purchase transaction. In order to discover how you can be an active investor and keep your investments strong, simply continue reading to discover a handy guide for stock market investors.
One of the worst mistakes which amateur investors make is to forget to check up on their investments. Ideally you should follow and assess the progress of each of your investments on a weekly or monthly basis.
As an example, you may learn that one of the companies which you’ve invested in is about to open 10 new international stores, which may convince you to increase your investment. Or you may discover that one of the companies which you’ve invested in has recently cut their dividend rate in half, in which case you may want to sell a portion of your shares. To free up capital to invest in higher paying dividend stocks.
Read the shareholder information which each company publishes online:
As an investor, you’ll have access to online information about each of the companies which you’ve purchased stocks in. As an example, you may want to read the annual reports of the businesses which you invest in. To get a sense of how successful they’ve been in the last year and what plans they have to increase their share price in the coming year.
You can also find dividend reports online which will tell you the last dividend price which each company signed off on as well as their plans regarding dividend rates for the next financial year.
By staying up to date with the latest news from each of the companies which you’ve invested in, you’ll know which businesses you should continue to invest in and which businesses to hold off investing further capital in.
Purchase shares on a weekly basis:
The best way to accumulate stocks in a business is to purchase extra shares in the business which you’ve chosen on a weekly basis. In order to average out the price of your stocks. As if you continue to purchase stocks each week, regardless of whether the price is low or high, your average stock price will be a steady, reasonable amount. This strategy is particularly useful if you want to decrease your risk as a stock market trader.
Practice stock trading using a safe, demo account:
Sign up for a demo account in South Africa, so that you’ll be able to practice purchasing real life stocks at live prices. To see whether you have a knack for reading the market. Or whether you need to continue making practice transactions, before you start making large investments with real money. If you haven’t bought shares before, it’s well worth starting off practicing trading in the stock market by using a demo account.
If you follow all of the tips which are listed above, which will help you become an active, smart trader, you should have no trouble keeping your investment portfolio strong.