First-time stock buyers need to understand a few basic principles of investing in order to gain profits. It is useful to view investing in stocks with a different viewpoint than that held by gamblers. The wise investor needs to approach the topic of buying stocks in a way that relates to common sense.
1. Avoid the Trap of Day-Trading
Day traders claim to possess the most intricate mysteries regarding purchasing stocks. However, numerous investors who trade several times a day sometimes end up with less money than investors who take the time to hold onto their investments for reasonable periods. Note that a reasonable period is typically longer than a few minutes.