1) Ready for the trading day.
The capital market is characterized by dynamics in which, in order to be as prepared for it as possible, it is important to perform early learning. That means revisiting economic issues, following quarterly reports, examining and analyzing analysts' forecasts and holding graphs on a weekly basis.
2) Examining investment policy (short-term and long term)
Is it worth investing in the short term or investing in the long term? It very much depends on the nature of the investment and the personal needs of each investor, in my personal opinion, each investor should know how to incorporate both short-term investments and long-term investments into their portfolio.
3) Diversification of investments.
Investing in stocks involves high risk but may also yield high returns. It is very important to carry out risk dispersion between the various products on the TASE or even between different markets and thus reduce the risk of the investment portfolio.
4) Losses must not be ignored.
Any action taken in the capital market must be taken seriously. You also have to learn from profitable transactions, especially from losing deals. It is very important to keep a trading diary and record transactions, record the reason for profit or loss in each transaction and why they made the transaction in advance, internalize the steps and formulate a more informed "trading approach" through them.
5) Each stock is a business company, know the company's activities.
Behind each stock on the markets stand business company, in order to try to understand whether a stock will grow or fade, it is important to know the company, whether there is growth potential in this area, how much macroeconomic data affects the company's activity and how the company works to maximize its potential.
6) Do not forget the fees and taxation.
It is important to remember that there are fees derived directly from the transactions. Therefore, even before making the actual investment , it is important to examine this matter. Calculate the fees as part of our investment, create a new purchase rate that includes fees and thus measure the real profit or loss from the transactions we make. If traders in global markets, it is important to pin the investment to the foreign exchange rate as well, which has a very large impact on transactions.
7) Act rationally.
The last and perhaps most significant tip is always to act out of rational considerations. When it comes to trading on the stock exchange, you have to be sharp. Investments must be managed calmly, it is important to conduct themselves according to an orderly plan, set clear sector boundaries, and know how to make the right decisions - both in profit situations and in situations of loss.
8) Improving knowledge.
The capital market is characterized by its pace of development and its dynamics, so it is always important to investigate, learn more necessary tools for trading and managing investments and risks in the investment portfolio, always want to improve and understand other areas that may affect the investment portfolio, each trading day is a new rate and each trading day has different effects on the companies, treat your portfolio like a business.
9) Performance comparison.
One of the most important issues in trading is to know how to compare and compare the portfolio correctly.
It is very important to measure the performance of the portfolio and compare them to the relevant index in terms of type of investment, for example if most of the portfolio is focused on technology stocks, compare the portfolio's performance to the technology index (NASDAQ), the ambition of all of us is to beat the index, so if you are not there, improve the portfolio, understand where the problem is in the portfolio and make changes.
In conclusion, being a trader in the stock market is not an easy job that requires a great deal of understanding, knowledge and mechanics. Understand the basic rules and improve your vulnerabilities.
Learn every day how to be better traders and most importantly, set goals to achieve peak stock market performance.
** The foregoing should not be considered any recommendation for the execution of actions and/or investment advice and/or investment marketing and/or advice of any kind. The information presented is for information only and does not constitute a substitute for advice that takes into account the data and the special needs of each person. Anyone who makes any use of the above information does so at his own discretion and at his sole responsibility.