10 ways to play stocks for beginners with no experience to make your portfolio grow sustainably
10 ways to play stocks for beginners with no experience to make your portfolio grow sustainably
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We have probably heard and thought that “Investment has risks. Investors should understand the characteristics of the product and return conditions before investing.” In the world of investment, there are many different forms. But why is investing in stocks another smart choice that allows you to create opportunities to increase your sustainable wealth? This article will take you to get to know 10 checklists on how to play stocks for beginners that will help you understand the basic steps, from investment planning, studying about the stock market to risk management, so that you can start investing with confidence and have the opportunity to create good returns in the long term.
1. Know your financial goals
Setting clear financial goals is the most important first step before you start investing. These goals will determine how you will play stocks. For example, short-term investment is an investment that focuses on making profits from short-term stock price fluctuations, but has a high risk due to stock price fluctuations. Or long-term stock investment is to wait for dividends, including making money grow for the future, as savings, investing for retirement, or investing to expand the business. Let's see what each type of goal is.
1.1 Investment for savings
It is taking the money we save to invest in various assets that are expected to give higher returns than depositing money in a general savings account. The main purpose is to increase our capital to spend in the future, such as buying a house, buying a car.
Examples of assets that can be invested for savings: Debt mutual funds, savings bonds, not more than 3 years
1.2 Investment for retirement
It is taking some money to invest in various assets to generate long-term income. The main goal is to have enough capital to spend during retirement. This is the period when we are no longer working full-time.
Examples of assets that can be invested for retirement: bond mutual funds, savings bonds with a term of more than 3 years, gold, or if you want to invest in high-risk assets, in addition to stocks, there are digital assets, equity mutual funds, etc.
1.3 Investing to expand the business
This is using capital to develop the business to grow more, whether it is investing in assets or investing in human resources, marketing to increase competitiveness and generate income for the business in the long term.
Examples of assets that can be invested to expand the business: investing in stocks, investing in mutual funds, digital assets, equity mutual funds, etc.
2. Study stocks and the stock market
Another way to play stocks that new stock traders should not overlook is to understand stocks and the stock market first. Stocks are divided into 2 main types:
Common stocks: These are common types of stocks. Common shareholders have the right to vote in shareholder meetings and are entitled to receive dividends.
Preferred stocks: These are stocks that have more special privileges than common stocks, such as the right to receive dividends before common stocks and the right to receive debt payments before common stocks in the event that the company goes bankrupt.
What is the stock market?
The stock market is a place where investors can buy and sell stocks of various companies. The stock market is both a formal stock exchange and an online stock market that is more accessible.
After we have learned about each type of stock and the stock market, let's move on to some basic trading methods and techniques. Let's start by opening a stock trading account, or what many people call "opening a portfolio". Then start studying information about the stocks you want to invest in, their performance, financial statements, and various news. Then plan your investment, choose the right stocks, and follow up on your investment results.
3. Understand the risks
New stock traders should always remember that investing involves risks, with the possibility of both profit and loss. The risks of investing in stocks It comes from many factors, such as stock market risks, economic risks from inflation, and adjustments in interest rates in financial markets.
For investment risk management methods, it is recommended to diversify your investments into various assets, such as stocks, bonds, gold, or real estate. This will help reduce the risk of a single asset giving poor returns. It is also not recommended to invest without knowing anything, as this will increase investment risks.
4. Set an investment budget
Setting an investment budget should always take into account monthly expenses, such as what necessary expenses we have and how much money is left for investment. An interesting thing for new stock traders is that you should not invest all your money in the stock market because the stock market is highly volatile. It is recommended to start with a budget that you can accept the risk, such as investing 1,000 - 5,000 baht per month or 10% of your total income per year. Diversifying your investments is a strategy that helps reduce risk and increases the chances of getting better returns. For example, investing in mutual funds or investing in stocks in many business groups such as banks, energy, technology, etc.
5. Choose the right stocks
Choosing stocks with good fundamentals will lead to good returns in the long term. Therefore, before choosing to buy the first stock, new stock traders should study and understand how to choose stocks before deciding to invest, such as considering various factors such as financial statements, operating results, revenue growth rates, and company trends, or according to our business that we are interested in. We have compiled 10 interesting foreign stocks in 2024 for good returns in the long term.
6. Monitor and evaluate investment results
Because investing is not just deciding to buy stocks once and then leaving it. Monitoring and evaluating investment results regularly will help us adjust our investment strategies to suit changing situations. Due to the high volatility of the stock market, situations change.
7. Study the market and analyze news
Because the stock market is moving all the time, following the news and studying and analyzing the market regularly will help you understand the various factors that affect the movement of stock prices. For example, following economic and financial news will help investors better understand market trends and stock directions. Currently, there are many investment media that are easily accessible, both from financial news websites, social media, and analysis from various brokers that allow us to know about the adaptation to market changes. This is quite easy to do because there are quite a lot of general investment media and they are easily gclub ทางเข้า ล่าสุด accessible. For example, news about interest rates, the world economy, political situations, or changes in important industries can directly affect stock prices. Being aware of this news will provide you with sufficient information to assess the situation and adjust your investment strategy appropriately. Also, reading analysis from investment experts or studying technical and fundamental analysis will help you better understand the overall picture of the market and the direction of each stock. No matter what type of analysis you use, having basic knowledge in this matter will help increase your confidence in deciding to buy or sell stocks.
8. Create investment discipline
Investing in stocks is not a matter of luck, but a process that requires planning, knowledge, and, most importantly, discipline. Having investment discipline will help investors make decisions mindfully and rationally. It is recommended to set personal investment rules and strictly follow them, and not be sensitive to market volatility. For example, setting personal investment rules is to clearly define investment goals, such as short-term, long-term, or expected return.
9. Seek advice from experts
Investing in stocks can be complicated for new stock traders. Seeking advice from experts is another way to help investors better understand their investments and be able to invest with confidence. Receiving advice from a financial advisor or investment expert helps you make the right decisions and reduces the risk of making mistakes that may occur.
10. Invest in knowledge and self-development
The best investment is not just putting money in stocks or assets. The best investment is investing in knowledge and self-development. Continuously learning and developing investment skills will lead to long-term success because the stock market and investment are constantly changing. Those who can adapt and develop new knowledge will have a greater chance of making profits and reducing risks. Continuously learning and developing skills through reading books, attending courses, and following news and analysis from reliable sources will help you make investment decisions with confidence and efficiency.