1 minute read
Abdul Rehman
your research. Read company & research reports to better understand the business dynamics rather than focusing on what the stock price will be in the next 30-60 days.
2. Price is what you pay, value is what you get
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How to secure your financial future is one of the most important questions on everyone’s mind. Many of us save some portion of our income today so it can take care of our expenses in the future. Whether it is buying a home, establishing a university fund for our children or saving for Hajj, having some investing skills can really help you prosper in this journey.
Some of us are afraid of taking control of our investments and leaving it to the professionals in the banking/insurance industry. For the brave ones out there who are passionate about investing and want to learn the tricks of the trade, I will share my top 5 skills that you should master in order to become a successful retail investor and secure your financial future.
Investing is very simple. It is possible for you to take out some time in your daily routine and grow your savings in an efficient manner. Broadly speaking, there are 2 types of retail investors - Part-time Active & Passive investors. This article will focus on the Part-time Active investors, who enjoy doing their own research, want to pick their own stocks and feel jubilant when their companies perform well.
Here are 5 things that will make you a better retail investor:
1. It is all about patience and discipline, you do not need a finance degree/qualification to do well Stocks are nothing but a small partnership in a business. If the business does well, stock prices will follow. There is no rocket science. People focus on all sorts of things, money supply, foreign liquidity, current account deficit etc. whereas they should be focusing on the business performance. Getting sufficient orders from its customers, making a good profit on its sales, and healthy growth plans for the next 5 years are all positive indicators. This should be the focus of
