Even if you are a beginner investor, investing in US stocks can help you build wealth and leverage the growth potential of top companies. By following a few US stock market tips for newbies, you can start hedging against the more volatile Indian share market.
This blog will give you nine share market tips that beginners can use to take their investment game from zero up to some. Let’s get started!
Why choose the US Stock Market?
The US stock market is your best option for geographical diversification. It offers access to global tech giants such as Google, Apple, Tesla, etc. It also offers higher returns due to the INR’s constant depreciation against USD.
You can invest up to $250,000 in US stock with the Liberalised Remittance Scheme.
Share Market Tips: From Novice to Expert, 9 Tips for Beginners
You can use these share market tips once you have decided your investment goals, risk tolerance, and time horizon.
1. Research! Research! Research!
Being well-prepared is the best way to prevent losses. If you cannot afford it, you can hire a brokerage to do the research for you.
2. Decide on your investment approach
Index funds are ideal if you don’t have the time or patience to do research. Index funds, such as the S&P 500, have a diversified asset portfolio and perform on par with their underlying index. This allows you to minimise your risk while still ensuring a more or less stable return.
3. Determine Your Investment Exposure
You may have heard this tip before! You may experience some losses as a novice. Prepare yourself by limiting your exposure to investments. Once you become familiar with the market, you can increase your exposure.
4. Invest in companies you understand
Do not buy shares based on the recommendation of a co-worker or friend. You should never invest in a company unless you know what it does and how they generate profits. Beginners should stick to tried-and-tested names such as Amazon or Apple.
5. Consider investing in fractional shares
Consider fractional shares instead if you have a small investment budget. This allows you to diversify a small investment portfolio and invest in companies otherwise out of reach.
6. Avoid penny stocks and stick to blue-chip stocks
Blue-chip stocks offer a safer investment for new investors because of their solid balance sheets and steady earnings growth. Penny stocks, however, are more volatile and risky due to the potential loss.
7. Remember Conversion Charges
This tip is for novices and beginners. You must consider the conversion fees since you will be investing in US Dollars. Exchange and transfer charges will be charged when you send money to an account for foreign trading. P.S. Keep an eye on the budget for 2023, as there may be some tax implications.
8. You Can’t Time The Market
Avoid buying stocks at low prices, expecting a price increase, only to see the price drop further. You should not waste your time on this useless exercise. Instead, please focus on the company’s financials and its performance to determine a stock’s value.
9. Start Investing Now!
There’s never a better time to invest in the US Stock Market. Remember that building wealth takes time and patience. A long-term plan may produce better results than one that is short-term.
Invest with Confidence in US Stocks
With these US stock tips, you can begin your journey and grow as your knowledge and skills develop. Fi Money can help you if you are still confused by the US stock market. Fi Money is perfect for new investors. It allows you to invest at the best forex rates in the industry. You can now own shares in Apple and other top US companies, such as Microsoft, Tesla, and others. Fi’s intuitive interface simplifies US Stocks, along with their FINRA-regulated broker partner, Alpaca Securities. Curated Collections, such as All-Time Favourites, can be used by novice investors to help them make decisions. Fi also doesn’t charge any withdrawal fees for US Stocks.