Thndr Claps
  • U.S.
  • Egypt
  • Saudi
  • Thinkers
  • Arabic
No Result
View All Result
Thndr Claps

Thndr Claps » Thndr Thinkers💭 » EGY Thinkers » 5 steps to take before buying stocks

5 steps to take before buying stocks

by Thndr Thinker
June 4, 2022

If you are thinking about entering the stock market and the world of stocks, here are 5 steps you must do:

1. Having an account with a brokerage firm: Having an active account with a financial brokerage company is as simple as opening a bank account with any bank in Egypt. Almost the same requirements that the bank needs are the same as those required in the process of opening an account with a financial brokerage company, and this step opens the door to the stock market and dealing in it.

2. Conducting stock research: Conducting research for the stocks that you want to own is very important before thinking about buying a particular stock because the search will give you a special view of this stock, its value, its importance, and how satisfied you are with the purchase you want to enter into, and therefore this will affect your feelings about your future decisions on the stock, whether to keep or sell.

Try to make your goal simple and do not go too far with a lot of data and information that may distract you. You can start with companies that you know as a consumer and love to own shares in. As well-known billionaire Warren Buffett says, “Buy in a company that you want to own stock in, and don’t buy just because you want the stock to go up and make gains. Your goal in research is to find the companies you want to partner with.”

After you define your goal, you can view the company’s financial data, which is available in a number of sources, as well as track the company’s daily news and perform financial and technical analysis to know all the details about the stock, the company, and the expected profit or loss.

3. Determining the number of shares and diversifying the portfolio: Coming up after knowing which companies you want is to determine the number of shares and diversify your investment portfolio. If you are new to the stock market, you can try the market at first by activating the demo market system and thus experience the feeling of buying and selling virtually. This is similar to buying and selling in the real market and thus training yourself not to fall under any pressure of any kind at the time of buying or selling because this will benefit you in mastering your market decisions.

After navigating the world of the virtual market and feeling that you are ready to start investing in the real market, you can start buying low-value stocks, so that if they don’t increase you will not lose in most cases, because they are already low, and it will be an exercise for you on the market and a quiet start in your investment career.

4. Stop Loss – Knowing when you can stop the loss is important, as many do not know when they can stop the loss. The basis of the stop loss is the extent to which you can bear more losses. The extent to which you will accept more losses depends on your financial ability, your correct reading of the stock, and the validity of the analysis you have conducted on it.

Not everything you see that glitters is gold, many times when the wind comes against what you want and your expectations of profits turn into losses, that’s where the importance of the stop-loss order lies, which is when you set a certain limit and when the stock drops and touches this barrier, the stock sells at this point, therefore it stops your losses.

5. Don’t put all your eggs in one basket – It is imperative that you do not put all your investments in one place. The stock market is a volatile market, and decisions at the time of volatility are difficult and you should not focus on decision-making in those times because they are not the most appropriate times. Try to calm down, read the indicators correctly, and know your investment goal before going after the ups and downs.

Make your investment in stocks the beginning of a long investment journey that depends on other forms of investment that support you whenever one type of them fails you. Do not limit your freedom to a particular type of stock, and also make sure that you are strong and resistant to fluctuations and make decisions based on a clear vision.

In the end, investing in stocks is one of the doors to financial freedom, and owning strong stocks is one of the most important ways to achieve profits. Whoever fears climbing mountains will live forever among the pits.

  • This is not investment advice, & you should do your own research before making an investment decision
  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)

Related Posts

No Content Available

Website

Community

Blog

Learn

© Thndr. All rights reserved

No Result
View All Result
  • U.S.
  • Egypt
  • Saudi
  • Thinkers
  • Arabic

Disclaimer: Thndr does not provide investment advice, individual investors are responsible for their own decisions or can seek independent advice. The value of investments can go up and down. Thndr is a trading name of Thndr Securities Brokerage which is authorised and regulated by the Financial Regulatory Authority (FRA). Registered in Egypt (no. 804)..© Thndr. All rights reserved

 

Hellođź‘‹ We want you to be able to express your opinions on anything and everything finance and economics related to the Egyptian and US markets.

This is why we introduced Thndr Thinkersđź’­

Let’s go through some housekeeping notes before you jump into publishing your article to all Thndr Claps readers!

Type of Content📝 We want to see market-relevant content that shows good analysis, please! Base your articles on facts 

Don’t be shy, explain🗣 Flex your knowledge to us, and we’ll share it with all the readers!

Be Original🙏 Please don’t copy. No one likes a copycat. All submissions are welcome as long as they’re yours 

Make your title attractive🤩 A title is like the cover of your book. Attractive enough to make you look at the book but also clear enough to tell you what the book is about.

Cleanđź§ą We’re all humans and we all make mistakes. But please try and clean up the article so it’s clear for all the readers 

No promotional content🚫 We don’t publish promotional content.

Any questions about becoming a Thndr Thinker? Email thndrclaps@thndr.app and we’d be happy to help!

Normally, your article will be published within 24 hours of submission (if you followed the guidelines)Â