1 Research Your Market
This may sound obvious, but you need to have as much information as possible to help you to make the best decision.
2 Decide Your Strategy
Decide your strategy before you buy your shares. The main strategies can be generalized into: value investing - where you purchase shares which you think are currently undervalued; growth investing - where you rely on long term growth, and finally, there is contrarian investing - this does not mean that you go against the trend, it means that you don't necessarily go with the market trend. Always know your strategy before you part with your money.
3 Don't Risk What You Can't Afford To Lose
This is advice which you will hear all the time, but it is very important advice. If you cannot afford to loose the money it will affect your decisions. To buy and sell shares successfully you need to be able to follow your strategy without worrying about the bottom line figures all the time.
Too much pressure on bottom line figures may cause you to deviate from your strategy and to miss out on successful share buying.
Basically, if you ignore any of the above there is a good chance that you will fail. A clear mind and confidence are essential to success and if you cannot abide by the three simple guidelines above then it is probably not the right time or place for you to start investing in shares.
Reg_Maudling
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