The stock market is often seen as a means to make easy money. However, investing in stocks takes time, discipline, and a systematic approach to investing. It also requires patience and a longer-term investment horizon.

It’s easy to be enticed by the promise of quick returns and a quick fix, but the reality is investing in stocks is a lengthy process that involves a lot of highs and lows. The long-term investment can bring significant benefits. Here are some share market strategies that novice investors should be aware of before they begin.

Don’t be a Jack of All Trades

New investors often make the mistake of jumping from one strategy to the next. This can be a costly error, especially for those who are just learning the techniques. Some newbies, for instance, try to be „jacks of all trades“, switching from trading and buying short-term investments (options or futures) into investing in US stocks. This strategy is risky as well as expensive since it entails many charges for transactions including currency conversion costs, and exchange rates.

Follow a single investment strategy instead and concentrate on the potential value of a stock in the long term. Avoid overreacting to short-term events and paying attention to price fluctuations, and be sure to keep track of your stocks at least once every quarter (or when you receive quarterly reports). Most important, don’t be caught in the search for the next big thing.

Stock Market Tips for Beginners