Before Investing

Now that you think you are ready to get started with the investment, here are some points which you must consider before investing.

Golden Rules:

1. Do not invest the money which you can't afford to lose
2. 90% of newcomers, lose their 90% of investment in first 90 days
3. 85% are losers, 5% are winners and the remaining 10% follow the winners.

Understanding Zero-Sum Game

This is very simple to understand, you make money because somebody has lost money. You won't be getting anything extra nor going to lose anything extra. What's on the table will be shared with the winner.

Planning

It is very important for any business person or employee to plan. There is an old saying "If you are not planning, then you are planning to fail".

A trader is an entrepreneur who has started his business that trades in Equity. You can get your business off to a good start if you have a plan for what you want to do and how you're going to do it. With a plan, you know what your goals are and what you need to do to achieve them.

Setting Your Goals:

1. How much you want to earn daily, weekly, monthly, yearly and so on. Set your target accurately. Define it in the exact term, never say you want to earn more, be specific. Example: I want to earn ₹20,000/- per month.
2. What will you do with the profits you make in trading? Are you going to invest that profit or withdraw it?
3. How much you are going to invest in achieving your goal?
4. Evaluating and revising your business plan. Where am I now and where I want to be.

Biggest Mistakes One Make:

1. Want to earn more in short period of time
2. Using lot of leverage
3. No patience
4. Blindly following the news, youtubers, forums, etc.
5. Not utilizing resources properly
6. Don't hold in hopes of making up a loss. The market doesn't know what you own and will not reward your loyalty and best hopes.