Dos and Don'ts Of Investing

No one can pull you down when you have your own stronghold weapon. The stock market is just a business of the right skills. When you get it you will already win the battle. Make sure you know everything inside out from stock market fundamentals to advanced. In this blog, you will learn the important dos and don’ts that every investor must know before investing. These do’s and don’ts are going to be very useful in your investing journey.

Read the full blog for a better understanding.

 

 

DOs:

1. Deal only with SEBI/stock exchange-registered intermediaries.
2. It is very important for you to maintain and keep copies of all investment documentation at all times ( e.g, application forms, acknowledgement slips, contract notes).
3. Follow up diligently and promptly, for example, if you do not obtain the required documentation within a reasonable period, contact the responsible party, such as the trading member, corporation, or other entity, right away.
4. Give your Trading member/agent/depository participant precise and unambiguous instructions so they can avoid making any mistake.
5. Indicate whether you wish to trade by using a physical method or electronic method.
6. With proper research and study, investors should make appropriate investment decisions without being swayed by deceptive advice in the public media and must double-check any claims stated in the advertisements.
7. always maintain extra copies of papers you send to companies and other organisations.
8. Important documents should be sent over a secure mode/registered mail to assure delivery.
9. Ensure that you receive a contract note/account statement for each transaction at the end of the day.
10. Before you buy, be sure you have enough money.
11. Always settle your debts with market intermediaries through traditional banking methods.
12. Check the company's credentials, management, fundamentals, recent announcements, and several other disclosures made under various restrictions before making an order with the market intermediaries. Websites of exchanges and companies, vendor databases, business periodicals, and other sources of information are among the sources of data.
13. In the stock market, there are no assured returns on investment.
14. By establishing geographical jurisdiction, file a complaint or Arbitration Application against the Trading member at the affined Regional Arbitration Centre. If the complaint and/or arbitration application be filed at the concerned Regional Arbitration Centre, the time spent resolving the complaint using IGRC services will not be taken into account while calculating the period of 'limitation' in filing arbitration applications.
15. Please utilise your address to determine the geographical jurisdiction when filing a complaint against a BSE-listed company at the affined Regional Arbitration Centre. As a result, the complaint will be processed quickly.
16. Adopt trading and investment methods that are appropriate for your risk management, as all investments involve some risk.
17. Before registering as a customer with any intermediary, conduct due diligence. Read and comprehend the contents of the Risk Disclosure Document, which is required for trading through brokers as part of the investor registration process.
18. Equities with a quick spike in price or trading activity, particularly low-priced stocks, should be avoided.

 

 

Don’ts: 

1. Dealings with unregistered traders, sub-brokers, and intermediaries are not recommended.
2. Don't sign any documents with a third-party mediator unless you've thoroughly read the terms and conditions.
3. Don't be fooled by companies that display official approval/registration because the approvals may be for something other than the securities you're buying.
4. Do not make business decisions based on rumours or 'recommendations.'
   
   
5. Do not entrust the safe keeping of your Demat Transaction sip book to any third party.
6. Don't forget to consider the investment's hazards.
7. Don't be fooled by guarantees of investment payback via post-dated checks.
8. Do not register any grievances/arbitration requests against trading members with the Regional Arbitration Centre, which has no geographical authority over the subject. Investor complaints are resolved by the Exchange through a quasi-judicial arbitration and IGRC procedure. If the complaint is lodged at the concerned Regional Arbitration Centre, the time spent resolving it through the IGRC will not be taken into account while calculating the period of 'limitation' in filing an arbitration application.
9. Do not submit a complaint against a company listed on the BSE with a Regional Arbitration Centre that has no geographical jurisdiction over the case.
10. Remember that taking proper transaction documentation, especially from someone you know, is a sign of good faith.
11. Don't be fooled by high-yield claims.
12. Don't be swayed by marketing in print and electronic media touting a company's financial performance.
13. Don't believe everything you hear in the news about companies; part of it could be false.
14. Don't follow the footsteps of others who may or may not have profited from their investments.
15. Don't be fooled by promises of unattainable profits.
16. Don't be afraid to approach anyone who is experienced in the stock market, or you can also approach the right authorities.

 

Wrap-Up!

Before you start investing, it is very crucial to get complete knowledge of the stock market. Every investor must know the dos and don'ts of the stock market. Hope this blog assists you to determine the key points before your first investment. In case you want to get in-depth knowledge of the stock market and are looking for some authentic place to learn then StockDaddy is one of the best stock learning platforms where you can learn anything about the stock market.