Rules Of Stock Market Investing

Stock Market gives immediate returns to people who invest wisely. If you are looking forward to make quick money, you can work in stock market. Stocks are financial instruments which make you part owner in the company or the firm. When you buy stock of a company, you are a passive owner of the company. Almost all corporations issue shares to public and can be traded on stock exchanges around the world.
As an investor you should follow some golden rules of investing. Some of these important rules are listed here,

* Buy when low and sell when high : This is a simple concept, but often eludes practice. Your entry in every stock should be at the low, not at a high. As a general rule, you should buy when every one else is selling while you should sell when everyone else is buying.

* What goes up comes down : If you are consistently observing that prices for a share are going up, it will come down surely. The reverse is equally true. If you begin looking for a reason why market is down or up, you will waste time and energy. Market as whole moves up and down due to a wide variety of reasons, and as a retail investor you have very little control over it.

* Information flow in Stock Market : Understand that, if you learn a clear tip about some stock, million other investors would have heard it too, so they also will be doing what you want to do. This action will never give you profits. Profits are generated when you move against the heard with information with no one or very small group of people have.

* Understand market sentiment : As a savvy investor, you can try and understand the nature of market. To understand the nature of market there are three sets of theories, Fundamental Analysis, Technical Analysis and Risk / Money Management Techniques. Read all of them.
* Disciplined trading : You should always trade with a discipline. Cut your losses quickly and reap profits. As an investor out to make money in short time, as soon as you see your profit, exit the stock.

* Belief in efficiency of market : Remember that markets are not efficient and when you invest in stock market, there is no way that you will have all the information about the company. So, your trading strategy should be based on partial information not on a belief that you have all the information required for trade.

* Advice from other people : Advice from friends, brokers and trading firms at Wall Street is very good to listen, but what you do should always be based on your own judgment. The key is your own logic and wisdom as the firms out there will loose nothing in case your stock looses value. In fact, if you list to their advice and trade through them, they will make money irrespective the fact that you loose or make profits.

If you remember the points mentioned above, you can make quick money on stock markets easily.