Stock Market Tip

How come the minority of investors is almost always making profit and sees amazing returns on their investment while the majority of investors are losing money and seeing the value of their investment decline most of the time? Although there is no secret rule or magic formula for guaranteed profit, there are some tips for (beginning) investors that the most successful investors in the world apply and receive immense earnings from it.Each stock market tip below helps you to make profit, minimize risks and make investing as simple as possible. It is highly recommended that you read them carefully and apply them.Trade as less as possible: Pick your investments well and you will reap the great rewards of compound interest over the long-term. Buying and selling stocks to often will result in high fees that will only make your stock broker richer.Find stocks with a high potential for growth: Try to find stocks that you expect to grow rapidly in the future and/or are underappreciated by the market. Some examples of stocks that have grown at an enormous rate in the past few years are Apple and Amazon.Find a broker with low fees: If you still trade (most of the time) over the phone or in-person instead of an internet broker you are probably paying more than necessary fees for your trade. Find a cheap, reliable internet broker and you will be able to invest from the comfort of your chair.Don’t act like sheep: Don’t buy a stock just because you’ve heard/seen lots of people buying it. That stock is usually overvalued because lots of people have already bought it at a cheaper price before you and is at the verge of declining in value at the moment. See it as a bubble, the smaller the bubble the less risk of bursting and vice versa. When you’re buying the stock after the masses bought it, the bubble is already large and thus increasing the risk of bursting (declining in value).Make investing as simple as possible: You don’t have to read the plethora of stock market information in books/magazines and the internet. Most of the stuff you will read is pointless and won’t help you become a more successful/better investor. Only learn the fundamentals of beginning investing so you won’t get confused by all the information out there and prevent you from beginning investing. Find an internet broker which is beginner-friendly, you don’t need a broker which is geared towards professional investors and bombard you with advanced tools and higher fees.Don’t check your stocks every day: Checking your investments every day will result in nothing more than headache and stress. Earning vast gains on your investment doesn’t happen overnight or within a month but is the result of waiting a few years (or in exceptional cases in months). Checking investment blogs or magazines daily is also a waste of time and won’t make you better in investing/picking stocks.