The Guide To Choosing Your First Stock By Avaneesh Parasar

There is always a first time for new investors - once if you decide on beginning to explore the world of investments and stocks. However, it can get a bit overwhelming for beginners to choose from tens of thousands of stocks that are available in the market. Investors are hounded by the question of understanding which is the right stock to invest in? Well, you can put all your doubts aside as Avaneesh Parasar has the right tips for you and with these tips he can guide you in investing in the right stock.

How should you pick a stock?

All smart investors have three things in common according to Avaneesh Parasar. They are mentioned below:

• A well-researched stock investor always decides in advance about what kind of portfolios they want to achieve. They are always determined to stick to their decision.

• Smart investors keep themselves up to date about the latest news and the new happenings in the world of the stock market. They are aware of the events that keep the economy and every company going.

• Such stock market investors use the goals that they have predecided and the knowledge that they have acquired to make informed decisions in buying or selling stocks.

How can you determine your goals?

It is extremely crucial to determine the purpose of your portfolio. It is the first step to picking an investment. While most people invest in stocks to make money, there are also people according to Avaneesh Parasar, who are focused on being able to generate an income supplement when they retire or are about to retire. They think of preserving their wealth or may also want to explore capital appreciation. Since every goal is different, it requires a different kind of strategy.

Who are the three types of investors?

Choosing your first stock depends on the kind of investor you are. Avaneesh Parasar says that there are income-oriented investors who focus largely on buying and holding stocks in companies that are able to pay good dividends. The options in this include highly rated bonds, master limited partnerships and real estate investment trusts (REITs).

There are also investors who aim at wealth preservation and have a very low tolerance for risk owing to their circumstances. They always prefer to invest in blue-chip corporations. Such investors never chase initial public offerings (IPOs).

The third kind of investor are those who look for capital appreciation and therefore always look for stocks of companies that are in their best early growth years. Such investors as per a are always willing to take a high degree of risk when it comes to stocks.

Choosing your first stock is a critical step, it involves a lot of research and study. This way you will avoid making mistakes and also understand what kind of investor you are. Once you know the kind of investor you are, you will have clarity in choosing your stock. We hope these above-mentioned points by Avaneesh Parasar were helpful to you and guide you to choose the right stock.

Hrithik Chaurasia is a Digital Marketer, having more than 3years of experience in Digital marketing. His passion for helping people in all aspects of online jobs and freelancing.