How to Become a Successful Investor as a Beginner

• Updated September 24, 2021

It’s very obvious you can’t be successful without learning and implementing things, You might fail many times, you might fall off. All it needs to be successful is Time, Strategy, Market Research, and Rules that you need to learn and Take care of.

In this article, we’ll be discussing How to become a successful Investor as a Beginner, If you aren’t sure about your Investing path, I hope this article will be able to guide you in the right direction.

Become a Successful Investor as a Beginner How to Become a Successful Investor as a Beginner

Learn to Pick

If you’re new to Investing, It would be a good indication that you learn the fundamentals of Investing and follow the basic thumb rules of the Stock Market as well as wealth management.

Related: How to Start Investing in Stock Market

Investment Plan

Before you put your hard-earned money in the market, you need to have a clear and strategic plan of what you want to accomplish and how you are going to execute it throughout your journey.

The majority of the cases prove that a perfect balance is in healthy investing on a monthly basis that can handle sudden short-term frequent market ups and downs. Systematic Investment Plan ( SIP ) lets you invest in a Mutual fund/ SmallCase/ Share with an automated system.

sip calculator explained

If you have a goal to achieve in a few years or a longer time span, you can Calculate the amount that you need to invest each month to reach your Investment Goal, to ease the process you can use SIP Calculators.

Learn Regularly

You wouldn’t jump into a fighting ring without knowing the basics of sparring and self-defense, so the same applies to stock marketing investing too. It’s suggested to keep learning and your true goal of investing, as well as implementing them in real life.

Target Long Term

Instead of buying stocks and selling them at a higher price in a shorter timespan with Trading mindsets, try to implement Compounding on your investments to gain multibagger returns safely.

To get to know about the basic benefits of Long Term Investing over the short term / Intraday, let us discuss a bit regarding both concepts.

  • Intraday Trading: Intraday Exchange is also known as ‘Trading’, It is meant for Buying and selling stocks within the same market day. The stocks in Trading are bought not with the intention of investing, but to earn profit by harnessing the positive fluctuations & movement of stock indices.
  • Long Term Investing: These Investments are meant for buying Stocks and Holding them for Months or Years before selling. Thus it’s possible to avoid short-term market fluctuations and generate a higher return value.

Proper Research

Analyzing stocks is really important before Investing in stocks. We have covered a complete tutorial on how to do a fundamental analysis of a stock as a complete beginner. You may check that out for further knowledge or Stock research.

Learn: How to Analyze stocks as a Beginner

Diversify Portfolio

Whenever you’re having trouble choosing the best portfolio idea to Invest in, keep in mind that putting all eggs in a basket can be a major risk. Thus diversifying your portfolio with a vast niche can be really helpful to tackle sudden market changes.

single basket investment

You can try out other fields of Investments apart from buying direct Stock shares, There are Exchange-traded Funds or ETFs that represent the value of an asset that you can invest in.

  • Gold: Buying Gold ETFs means you are purchasing gold in an electronic form. Thus you can keep Gold as an asset in your demat account/ Portfolio.
  • Real Estate: The same applies for Real Estate ETFs too, which represents the Real estate market value in an Electronic form. Apart from ETFs, you can invest in Smallcases which are made of niche based bunch of stocks.

Besides Gold, Real Estate funds, You can get into Mutual Funds, Smallcases, or Bonds, etc to diversify your portfolio in a much vast and secure way.

Stay Updated

You need to keep an eye on the market majority of the time, waiting for a highly conserved opportunity. The Stock market is hard to predict, but one thing is for sure that it has fluctuations all the time.

Only by staying up to date, you’ll be able to grab the majority of the positive scopes on your behalf. Thus You need to be aware of current market scenarios in order to become a successful Investor as a beginner.

Do the Needful

Pay off Bad Debt

There is a huge difference between Debt and Bad debts, Bad simply refers to Unnecessary debts that need to be cleared in order to have peace of mind knowing you’re free from needless interest charging.

Some examples of Bad debts are acquiring liabilities instead of owning assets like Buying a car, Getting the all-new iPhone, and putting them on a credit card. It’s very obvious that there are certain benefits of having credit cards and If used in the proper way it can get you enough money to invest, but most people aren’t good enough to play with the interest rates and end up paying high-interest rates.

Build Emergency Funds

You probably have figured out how to spend your money wisely and how to save it with proper planning, you need to make sure that you have a backup fund that you have set aside in case of a crisis like Pandemic, Medical expenses, Brake down, etc.

It’s a good idea to keep your Emergency funds and Stock Investments totally separated. You’re free to save the money in the bank’s Savings accounts with total security in case of unexpected happenings. Though the return won’t be much, it’s better to have it as a backup source with a lower return rate.

Related: Mistakes to avoid as a Beginner Investor

Choosing Platform

While you’re promised to invest in Stocks, Mutual funds, or Golds as they’re common and most used beginner-friendly Investing mediums, you need to have a Discount stock broker platform to properly research and Implement with ease. There are numerous Websites as well as platforms from where you can start investing.

We personally use the Groww App, which comes in both the mobile Application & Website platforms, can help you invest in stocks, mutual funds, and Gold.

groww app signup

With an Analyzer that accurately shows graphs, Profit, Expenses, Revenue generation of a specific Share. It provides a Clean Dashboard, you can add or save a Stock for later research purposes. The latest charting tool, the Secure & safe system, easy to use interface, these features make Groww one of the best Platforms to open a Demat Account.

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An aspiring BTech Electronics and Communication student, obsessed with Coding, Gadgets, and Blogging.

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